More interesting and/or useful links about the current financial unpleasantness

122 economists, most from some of the top economics and business departments in the nation, express "great concern" about the Poulson plan. (Link via Marginal Revolution.)

Steven Landsburg concurs, separately. (With some interesting comments.)

John Berlau, writing on the Competitive Enterprise Institute"s blog, thinks the Poulson plan "would likely make mark-to-market and hence the credit crisis worse".

"How close was the financial system to melting down?" Supposedly, very close.

As I've seen several other economists propose, William Buiter suggests a mandatory debt-for-equity swap.

Did Fannie Mae and Freddie Mac cause the problem? Calomiris and Wallison say "yes". So does John Steele Gordon. (Love Gordon's crack: "Members of Congress — aided and abetted by their many waterbearers in the media — wonder why their collective approval rating is about on par with colon cancer’s.") James Hamilton says "maybe".

The Wall Street Journal editorializes (yesterday) that government was heavily involved in causing the mess. It lists five separate causes; it's similar to my Monday post.

A child's guide to what happened to AIG. I like the Jenga analogy.

Comments

[kim]

Dr. Newmark,

What do you think this bailout will do to the value of our dollar? I keep hearing that this will drive up inflation because our dollar will be weaker.

Kim