MichaelGowin.com/blog

As you know, the U.S. financial markets are in a tailspin as a result of the failure or potential failure of numerous investment banks.  As of this writing, congressional leaders have worked out a $700 billion plan with Treasury Secretary Henry Paulson to help save the banks–and the economy.  Congress will vote on the measure this week to authorize distribution of the funds to the Treasury.  Will it work?  Confidence in the plan will be reflected in the markets the next several days and weeks, so watch the Dow and S&P 500.

For a clear and relatively simple explanation of the mess and some critical commentary on the plan, see Richard Posner’s thoughts and those of his colleague Gary Becker.  The two are highly-regarded professors of law and economics (respectively) at the University of Chicago.  On the other hand, investor Warren Buffet expresses a great deal of confidence in Henry Paulson.  Again, watch the markets to see how this shakes out.

Filed under: Money by Michael