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...first glance Ottawa's C$125 billion pales in comparison to the $1-trillion "bad bank" being contemplated by Obama to jump-start lending in the U.S.; however, accounting for differences in size between the two economies, the figures are nearly identical. If Canadian banks, ranked best capitalized in the G7 according to the Geneva-based World Economic Forum, are sitting on massive cash injections to healthy balance sheets, what can Obama expect from U.S. banks...

Author: /time Magazine | Title: What Obama Can Learn From Canada on Bank Bailouts | 2/19/2009 | See Source »

...Over $12 trillion. This leviathan—the new combined total of the federal bailout—is enough to launch over 13 wars in Iraq and Afghanistan or buy about 325 Harvard endowments at the height of prosperity...

Author: By Noah M. Silver | Title: Bridging the Capitalist Divide | 2/17/2009 | See Source »

...Aside from its sheer enormity, this heap of cash is also intriguing because of the “public-private investment fund” included in Treasury Secretary Timothy Geithner’s recent proposal. The potentially $1 trillion vehicle would aim to combine public and private capital to buy toxic assets from banks. Though widely criticized in its eight days of life, the fund may succeed in attracting private investors—but only if Geithner offers more specifics to incentivize private financing and subdue historic antagonism between private and public sectors, which is traditionally worse in times...

Author: By Noah M. Silver | Title: Bridging the Capitalist Divide | 2/17/2009 | See Source »

...speculative. In two parts, the Treasury’s plan describes first the “public-private financing component,” which could “leverage private capital on an initial scale of up to $500 billion, with the potential to expand up to $1 trillion.” Second, the plan proclaims that “private sector buyers [can] determine the price for current troubled and previously illiquid assets.” Why should private investment funds supply this capital? And why would private firms be any better at pricing these toxic securities, when...

Author: By Noah M. Silver | Title: Bridging the Capitalist Divide | 2/17/2009 | See Source »

...Ironically, Obama’s strategy of “act now, think later” repeats Japan’s mistakes. Tokyo spent $2.1 trillion between 1991 and 1995, yet the economy stagnated. Politicians built roads to nowhere, starving businesses of capital and workers of jobs. Washington should fund some infrastructure repairs, but such projects should undergo cost-benefit analyses. Lacking such oversight, the bill recently rushed through Congress will breed fraud and waste...

Author: By Brian J. Bolduc, CRIMSON STAFF WRITER | Title: The Best and Brightest | 2/16/2009 | See Source »

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