Tuesday, September 23, 2008

Economists against the bailout

Dear Fellow Economist:

I write to encourage you to sign the attached letter opposing a broad, open-ended bailout of the financial sector. ...

Wayne T. Brough
Chief Economist, FreedomWorks


September, 23 2008

An Open Letter to the United States Congress:

We, the undersigned economists, write to strongly advise against the proposed $700 billion bailout .....

In addition to the moral hazard inherent in the proposal, the plan makes it difficult to move resources to more highly valued uses. Successful firms that may have been in a position to acquire troubled firms would no longer have a market advantage allowing them to do so; instead, entities that were struggling would now be shored up and competing on equal footing with their more efficient competitors. ...

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