I am sorely pressed for time today so don’t know how much I can blog, but the plans announced last night to guarantee new debt, deposits, and buy equity stakes is the right one according to all the economists I read and respect. It just makes sense.
I do think that this is a turning point for the crisis.
We’re not out of the woods yet, but we’ve at least stepped back from the precipice. There is still a long, bumpy (and a lot more blood to be shed) road to an eventual recovery.
Here’s a graphic from the New York Times that lists the “healthy” banks that are taking part so far: