The bailout debate for dummies

Tyler Cowen offers a handy simplification of the difference between the bailout plan put forward by Treasury Secretary Henry Paulson and the revised version proposed by Democratic Sen. Chris Dodd: Think of a barrel of apples, some good, some less good. To oversimplify, the Paulson plan has the government buy some of the bad apples. ...

Tyler Cowen offers a handy simplification of the difference between the bailout plan put forward by Treasury Secretary Henry Paulson and the revised version proposed by Democratic Sen. Chris Dodd:

Think of a barrel of apples, some good, some less good. To oversimplify, the Paulson plan has the government buy some of the bad apples. The Dodd plan has the government buy a 20 percent share in the barrel. In both cases government buys something.

Tyler Cowen offers a handy simplification of the difference between the bailout plan put forward by Treasury Secretary Henry Paulson and the revised version proposed by Democratic Sen. Chris Dodd:

Think of a barrel of apples, some good, some less good. To oversimplify, the Paulson plan has the government buy some of the bad apples. The Dodd plan has the government buy a 20 percent share in the barrel. In both cases government buys something.

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