Lawmakers in Washington continue to take a closer look at a $700 billion bailout proposal for Wall Street. A UW-Madison economist says it looks like a good move.
Don Nichols says the instability in the financial sector right now is causing panic and damage to assets, with many driven down to being worthless. However, Nichols says the plan may send a bad message to Wall Street that they can expect a bailout every time the markets are bad.
Nichols also likes the standards being set by the Federal Reserve Chairman and Treasury Secretary, which focus on helping the markets when "Main Street" would be damaged…but let's Wall Street suffer when it would only impact them.
