Further to the question I asked in my last post about exactly how the taxpayer is going to pay for the massive bank bailout, I came across this very interesting remark by an economist at Deutsche Bank, quoted by npr.org (http://www.npr.org/templates/story/story.php?storyId=101224460)
A single piece of paper may just be one of the most surprising and illuminating documents of the whole banking crisis.
It's a one-page research note from an economist at Deutsche Bank, and it outlines in the clearest terms the kind of solution many bankers are looking for. The basic message: We should forget trying to get a good deal for taxpayers because even trying will hurt.
"Ultimately, the taxpayer will be on the hook one way or another, either through greatly diminished job prospects and/or significantly higher taxes down the line," the document says. (My italics)
Interesting, though I’m not quite sure whether the writer is referring to the whole of the developed world or just the USA.
So now we know!
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