Sep 24, 2008
| Last Updated
Even if the Treasury TARP plan is implemented fairly and efficiently the US will not avoid a severe U-shaped 18-month recession and a severe financial and banking crisis: the recession train has already left the station in Q1 and the financial/banking crisis will be severe regardless of what the Treasury and the Fed do from now on. What a proper rescue plan can do is to avoid having the US experience a multi-year L-shaped recession and extreme financial crisis like the one that led to a decade long stagnation in Japan[...]
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