DeLong's FAQ is encouraging....
...Q: What if markets never recover, the assets are not fundamentally undervalued, and even when held to maturity the government doesn't make back its money?We've been betting on antibiotics, but the sewing needles are a good point.
A: Then we have worse things to worry about than government losses on TARP-program money--for we are then in a world in which the only things that have value are bottled water, sewing needles, and ammunition...
This is not the first time my usually well aligned economics team has been at odds, but they rarely take such clearly opposed stances. Paul's opinions are always clear, but Brad often opposes with strategic silence. This break is more overt; I hope Paul will not take it personally.
We are truly in uncharted waters.
Obviously everyone should read both the above links in full. It's a nasty world when the President breaks his daughter's hearts, but it is something to be able to pick up the Sunday morning blogs and get opinions of world experts laid out more clearly and honestly than any likely Presidential briefing.
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