Commentary Magazine


Contentions

Kashkari Explains A Lot

I just watched Neel Kashkari, the Treasury guru in charge of the multi-facted rescue effort, explain on CNBC what is going on and what the government is up to. A couple of points are clear: the purchase/auction of mortgage-backed securities, which was at the heart of the bailout, is only one of many tools. Itseems to be receding in importance. The emphasis now is clearly on the direct purchase of equity in financial institutions. And second, they haven’t really begun to do anything. It is a massive task to build the rules, gather information, and staff up seven different groups charged with everything from homeownership preservation plans to government oversight. It  is not surprising that the markets haven’t reacted, since we are not yet out of the start-up phase.

Bottom line: There are a lot of very smart people trying lots of different things. The goal is to loosen credit and restore confidence. And there is reason to believe the coordinated efforts of the European banks in cutting rates and pursuing parallel plans to take equity stakes in banks may help. But make no mistake: This will take a long time to get up and running.


Join the discussion…

Are you a subscriber? Log in to comment »

Not a subscriber? Join the discussion today, subscribe to Commentary »





Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor to our site, you are allowed 8 free articles this month.
This is your first of 8 free articles.

If you are already a digital subscriber, log in here »

Print subscriber? For free access to the website and iPad, register here »

To subscribe, click here to see our subscription offers »

Please note this is an advertisement skip this ad
Clearly, you have a passion for ideas.
Subscribe today for unlimited digital access to the publication that shapes the minds of the people who shape our world.
Get for just
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor, you are allowed 8 free articles.
This is your first article.
You have read of 8 free articles this month.
YOU HAVE READ 8 OF 8
FREE ARTICLES THIS MONTH.
for full access to
CommentaryMagazine.com
INCLUDES FULL ACCESS TO:
Digital subscriber?
Print subscriber? Get free access »
Call to subscribe: 1-800-829-6270
You can also subscribe
on your computer at
CommentaryMagazine.com.
LOG IN WITH YOUR
COMMENTARY MAGAZINE ID
Don't have a CommentaryMagazine.com log in?
CREATE A COMMENTARY
LOG IN ID
Enter you email address and password below. A confirmation email will be sent to the email address that you provide.