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Political Physics: The Wisdom of the Crowd

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A blogumn by Monique King-Viehland

Bailout Plan – Good, Bad or Ugly?

On Friday, October 3rd, President Bush signed into law the Emergency Economic Stabilization Act of 2008 (aka “the bailout bill”).  The 451-page law authorizes the United States Secretary of the Treasury to spend up to $700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation’s banks.  Supporters of the plan argued that unprecedented market intervention was critical to prevent further erosion of confidence in the credit markets and that failure to act could have lead to an economic depression.  However, opponents objected to the massive cost of the plan, the speed with which the bill passed and claimed that better alternatives were not considered.

I’m sure we’ve all been following the talk about the plan – willingly or unwillingly – since you cannot turn on a TV without hearing about it.  So I thought I’d add my two cents to the discussion, but first I’d like to know what you think?
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Was the Emergency Economic Stabilization Act of 2008 a good or bad idea?

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What will the impact of the EESA of 2008 be on the economy?

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Is it worth $700 billion?

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I’d love to get your responses to the poll questions above and feel free to provide additional explanations, opinions, etc. in the comments.

Next week I plan to share my thoughts on the Emergency Economic Stabilization Act of 2008 and I will incorporate the results of the poll and your comments.

See you next week!