Brad DeLong is marshaling evidence that Paulson's decision to let Lehman Brothers go bankrupt substantially worsened of the crisis. If true, there are two implications: Hank Paulson is not omniscient, and should not be given absolute control over $700 billion. Actually, that's true whatever the case with Lehmann. Two: It's possible that the momentary attempt to salvage free market principles was the final push that tossed the market into total chaos. I'm not convinced such an Aesop-ian lesson was worse the $150 billion or so that mistake will cost us, but maybe future generations will think so. ...
Anytime
