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Open Think Tank Articles

September 26, 2008 | HOT ISSUE: <br />How to Respond to the Financial Crisis?

From the Editorial Team: The current financial crisis has sent economists, politicians, and citizens alike scrambling to find solutions. In the US and Europe, expert opinion is divided on how to revamp the economy. How should the United States, the EU, the private sector, and others respond to this international situation?

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Global Must Read Articles

October 13, 2008 | God Save the Queen - She is Saving Us

Gordon Brown and Alistair Darling “have shown us the way through this financial crisis.” ++ The British Prime Minister and his officials lead the world in assessing the financial crisis and quickly enacting an apt solution. ++ The problem: lack of capital in the banking system; Brown’s solution: equity injections, a type of temporary nationalization, with the first commitment of funds coming to

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October 3, 2008 | Bailouts Work, But the Current Paulson Plan Won't

The Laevan and Valencia study of 42 recent bailouts shows they can work, yet the current Paulson plan may not. ++ “Paulson and Bernanke should use bailout money to recapitalize the banks, not buy bad assets.” ++ Furthermore, the US bailout is likely to cost $2 trillion, not a mere $700 billion. ++ Successful bailouts usually include debt relief for consumers and businesses, which the current plan

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October 1, 2008 | Paulson 0, Democracy 1

“It is a glorious day for democracy.” ++ With all members of the House up for re-election in November, the rejection of the Paulson plan is a clear indication of the American public will - Wall Street must be accountable, not the tax payers. ++ Americans distrust the Bush administration, question its trickle-down economic theory, and fear more allocations of public funds to political favorites,

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September 29, 2008 | Economics We Don't Understand

We are witnessing the very “bankruptcy of modern economics.” ++ While we have long understood demand-oriented macroeconomics, the current financial crisis does not conform to any previous economic model or known solution. ++ The previous $152 billion stimulus package didn’t help, since the problem lay with financial markets, not consumer markets. ++ The Paulson plan is the most effective solution

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September 25, 2008 | No Blank Check for Paulson

The Bush administration’s financial bailout package is not well received by Congress – and rightly so. ++ There should be no “blank check,” given Henry Paulson’s maladroit leadership. ++ Obama has outlined four cardinal conditions that are imperative to any effective bailout; “these are the right principles.” ++ Moreover, the government should give

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September 25, 2008 | Private Sector Boosts Asset Values, Not Government

In the late 80’s and early 90’s the government-owned Resolution Trust Corporation (RTC) was charged with overseeing $400 billion in assets, most from failed banks and loan institutions. ++ The lessons learned then are applicable now. ++ Assets require active management to increase value, which the government cannot provide. ++ Holding large amounts of assets will depress prices due to a looming

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September 23, 2008 | US Bailouts: Socialism is Not the Answer

Washington is bankrupt, fiscally and morally. ++ Socialism is in full swing, proving the free-market Republicans hypocrites. ++ Paulson wants Congress to grant the Fed $700 billion to buy private assets. ++ Such a move will only create more financial turmoil for the US and Europe in the future. ++ Moreover, the entire G8 is a financially “spent force.” ++ Yet, ironically the political landscape

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Jess  Lahrkamp
Jess Lahrkamp
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