Since the collapse of Lehman Brothers, the public sector has spent billions saving the banks. While these decisions are certainly debatable, they are understandable. The US financial industry misbehaved badly,... but it is still a sector with a future. ... After all, every other sector in the economy depends on banks for their financing.That passage originally caught my attention because of the rhetorical trick of shifting from an industry to a specific company. It came back to mind today when I saw the following graph in a post from Mike Konczal :
But what about cars? ... Does anyone, other than GM's management, believe that this company can come back? The current treatment, cash infusion and a reduction in corporate liabilities, provides a solution for a company that is broke, not for one that is broken.
Comments, observations and thoughts from two bloggers on applied statistics, higher education and epidemiology. Joseph is an associate professor. Mark is a professional statistician and former math teacher.
Friday, March 2, 2012
Has anyone heard from Dr. Glaeser recently on this topic?
Here's Edward L. Glaeser back in June of 2009 discussing why the financial bailout was a better idea than the auto bailout:
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