Not a blog but a "q-and-a" (pronounced "quanda"), this page is about the basics of economics. Its premise: there are no stupid q's. And if some a's seem dim, take heart: I can brighten them up in response to objections, corrections, refinements. Comments on posts feature yours, and my responses. Enough of you now frequent and query the quanda that I post most every day. Haven't seen your q yet? Send it again. All a's should be taken with a shaker of sodium chloride, if not a Lot's-wife's-worth. And speaking of salt, the mustache and "hair" in the photo has a lot less of that condiment, and rather more pepper, than can be seen on TV. Think of it as time travel.
What do you think about Allen Meltzer's views on rescue plan?
Name:
Chuck Goldberg
City & State:
Westport Point, Mass.
Question/Comment: How do you feel about Professor Meltzer's solution? He's with Mellon Institute, and was interviewed just before your segment. He's against any government involvement, but if we must, then loan money to companies who wish to borrow and repay with interest, and they accept compensation restrictions, etc. Seems simpler than what the Congress will construct.
Paul Solman: As I suggest above, I don't really see the difference between "buying" with government loans and "lending." I guess the point is that we get any possible profits in one case, an interest rate in the other. But if the firms go bust, they can't pay the interest, right? Then what happens? But Allen Meltzer has thought more seriously about this issue than I have -- or at least longer -- so maybe I'm missing something.
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What do you think about Allen Meltzer's views on rescue plan?
**Question/Comment:** How do you feel about Professor Meltzer's solution? He's with Mellon Institute, and was interviewed just before your segment. He's against any government involvement, but if we must, then loan money to companies who wish to borrow and repay with interest, and they accept compensation restrictions, etc. Seems simpler than what the Congress will construct.
**Paul Solman:** As I suggest above, I don't really see the difference between "buying" with government loans and "lending." I guess the point is that we get any possible profits in one case, an interest rate in the other. But if the firms go bust, they can't pay the interest, right? Then what happens? But Allen Meltzer has thought more seriously about this issue than I have -- or at least longer -- so maybe I'm missing something.
