Who wins? Somebody thinks shareholders do, since stocks jumped 300 points. He’s involved with the bailout already, so there’s no learning curve.
In 2005, he wrote “Changes in the Structure of the U.S. Financial System and the Implications for Systemic Risk” in Systemic Financial Crises: Resolving Large Bank Insolvencies, ed. by Evanoff and Kaufman. I don’t know if that puts him ahead of the curve, but it certainly should give fodder to anyone wanting to pick apart his paper record. The last sentence:
Probably the most important contribution that policy makers can make to financial stability is to avoid large monetary policy mistakes or sustained fiscal and external imbalances that increase the risk of large macroeconomic shocks, and to try to ensure that policy reacts with sufficient speed and force in the face of those shocks we are unable to avoid.
What about the mistakes we make trying to fix the shocks we created by making mistakes?
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