Saturday, September 20, 2008

Greg Mankiw's Blog: A Blank Check

Greg Mankiw's Blog: A Blank Check

"Sec. 3. Considerations.
In exercising the authorities granted in this Act,
the Secretary shall take into consideration means for—
(1) providing stability or preventing disruption to the financial markets or banking system; and
(2) protecting the taxpayer."

This is where his immense power embedded, especially (2), it is opens ends. You can interpret the (2) in many ways. Since USA the biggest economy, this impact on their internal external assets and as well as the world economy. The rescue $700,000,000,000 how and which way? When can people see the result ie. His term only 2 years.The result ( good or bad) will come many years later perhaps, or immediate term, world stock markets responds like a crazy whore’s hot one nightstand.

Update: From Naked Capitalism

"But here is the truly offensive section of an overreaching piece of legislation:

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."


" Nouriel Roubini does not think it passes the smell test:

`He's asking for a huge amount of power,'' said Nouriel Roubini, an economist at New York University. ``He's saying, `Trust me, I'm going to do it right if you give me absolute control.' This is not a monarchy.''

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