tag:blogger.com,1999:blog-11027528911364475.post6123040021065608257..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Do We Need an Education Bailout?Jakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-11027528911364475.post-71256137327828543362008-10-30T16:43:00.000-07:002008-10-30T16:43:00.000-07:00Broadening an extending unemployment insurance wou...Broadening an extending unemployment insurance would serve as an important automatic economic stabilizer, not least because the multiplier is very high. (The same is true for infrastructure spending.) Unemployment insurance has been greatly weakened over the past couple of decades.<BR/><BR/>Better to force debt to equity conversions on bank bondholders. Costs nothing to the taxpayer, and means the treasury does not have to go about buying toxic assets to restore bank balance sheets. So far we have seen a lot of bank bondholders bailed out, with the exception of LEH.<BR/><BR/>The recent asset bubbles led to the misallocation of capital, and the bailout is just worsening the problem.pwm76https://www.blogger.com/profile/06360404038525306119noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-28025633694332628332008-10-30T16:15:00.000-07:002008-10-30T16:15:00.000-07:00I can't agree with you more. I never defined my ba...I can't agree with you more. I never defined my bailout as cheap financing (though it couldn't hurt). I agree that higher education should be an affordable opportunity for all to share in.Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-46988938130336257082008-10-30T06:51:00.000-07:002008-10-30T06:51:00.000-07:00The problem is not affordable loans, the problem i...The problem is not affordable loans, the problem is that easy loans caused a spike in college attendance and allowed colleges to raise prices and borrow cheaply to expand their campuses. NONE of this was based on incomes and affordability. Cheap loans are not the answer. Smaller, more cost effective and CHEAPER TUITIONS are what needs to occur. People need to stop thinking that cheap loans equals more affordable assets. Artificially low interest rates just increasess inflation and causes malinvestment towards non-productive enterprises. This is turn creates an artificial environment that fosters expenses to rise without a subsequent increase in incomes which is required to service the debt.FattyKhttps://www.blogger.com/profile/00091119132764837578noreply@blogger.com