tag:blogger.com,1999:blog-5713178645208582139.post6305821106545363251..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: The Bailout is Not About Fat Cats on Wall StreetDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5713178645208582139.post-31993111528701008812008-09-25T10:48:00.000-05:002008-09-25T10:48:00.000-05:00ECB:Yes, the use of the word bailout is unfortunat...ECB:<BR/><BR/>Yes, the use of the word bailout is unfortunate. However, it is the term being used by most observers in the debate so one has to start there to connect with the masses. <BR/><BR/>I agree with your second point too...the devil is the details. I would refer others to you or other commentary on the web (see Krugman and Mark Thoma). They have far more wisdom on these matters than me.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-87955223625658218752008-09-25T10:13:00.000-05:002008-09-25T10:13:00.000-05:00On your wider point, first, the language matters. ...On your wider point, first, the language matters. (Deidre McCloskey has spent 2 decades ramming home that point.) Calling it a bailout prejudices our viewpoint, skewing us precisely to think of helping fat cats.<BR/>So I choose the more neutral government intervention.<BR/>Second, the details matter tremendously. Perhaps the Swedish model offers some guidance. This ruthlessly wiped out the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-838682362273997012008-09-25T07:30:00.000-05:002008-09-25T07:30:00.000-05:00Your point that credit is critical to the real eco...Your point that credit is critical to the real economy is correct.<BR/>Which makes it only the more amazing to me that currently popular macroeconomic models that economists use treat intermediation in such a desultory and simplistic way. The money supply (whatever that is) is a summary statistic for the whole plumbing network. (The only exception I can think of is Tobin<BR/>and Brainard, but Anonymousnoreply@blogger.com