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Brad DeLong — Rob Johnson and George Soros: A Better Bailout Was Possible

Summary:
Rob Johnson and George Soros: A Better Bailout Was Possible: "A critical opportunity was missed when the burden of post-crisis adjustment was tilted heavily in favor of creditors relative to debtors.... When President Barack Obama’s administration arrived, one of us (Soros) repeatedly appealed to Summers... [for] equity injection into fragile financial institutions and... writ[ing] down mortgages to a realistic market value.... Summers objected that ... such a policy reeked of socialism and America is not a socialist country... The political cost was the Democrats losing both the presidency, the legislature, and most state capitals, largely as a result of failure to stand up.Grasping RealityRob Johnson and George Soros: A Better Bailout Was Possible Brad DeLong | Professor of Economics,

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Rob Johnson and George Soros: A Better Bailout Was Possible: "A critical opportunity was missed when the burden of post-crisis adjustment was tilted heavily in favor of creditors relative to debtors.... When President Barack Obama’s administration arrived, one of us (Soros) repeatedly appealed to Summers... [for] equity injection into fragile financial institutions and... writ[ing] down mortgages to a realistic market value.... Summers objected that ... such a policy reeked of socialism and America is not a socialist country...
The political cost was the Democrats losing both the presidency, the legislature, and most state capitals, largely as a result of failure to stand up.

Grasping Reality
Rob Johnson and George Soros: A Better Bailout Was Possible
Brad DeLong | Professor of Economics, UCAL Berkeley

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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