Tuesday, February 24, 2009
Japan Considers Stock Buying as Market Slides
Exactly what I said the Fed should be doing here. It would help to boost confidence quickly and be a much more effective transmission mechanism to the real economy. Far better than all these confused solutions to help banks. Bank lending is pro-cyclical anyway, so to the extent that supporting the stock market helps the real economy, that would go a long way toward helping the banks. Japan did this in 2002 and J.P. Morgan and a bunch of bankers and financiers did it in the Panic of 1907. It worked.
Read article here.
Read about the Panic of 1907.