The Daily Parker

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Krugman on the Subprime Bailout

Princeton economist (and New York Times columnist) Paul Krugman thinks Tresury's subprime plan won't do much:

[W]e're almost surely looking at less than $10 billion in losses avoided. Meanwhile, estimates of subprime losses to investors are currently running in the $300 -$400 billion range. So the back of my envelope suggests that this plan is a drop in the bucket.
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