Any comments re views of economists?

1.Frederic Mishkin said: "If nothing is done, the potential for these markets to seize up in a big way is definitely there. When you look at the history of these crises, when things spin out of control, the cost to fix it later goes up exponentially." He endorses the judgment of Paulson and Bernanke.

2.Alan Blinder said: "The plan is a trickle-down approach from banks to Main Street,but if you reduce the flood of foreclosures and defaults - which he would have the government do by buying loans directly and then renegotiating the terms - it will make mortgage backed securities worth more." He totally disagree that this needs to be done this week. It is more important to get it right."

3.Joseph Stiglitz said: "If only enough money is provided to financial markets,the problem will disappear,but that does nothing to address the fundamental problem of bleeding foreclosures and the holes in the balance sheets of banks."

4.Glenn Hubbard said: "The root of the issue is recapitalizing banks. That could be done more efficiently through the government injection of preferred equity. Then the market could figure out the prices of the assets."

5.Greg Mankiw wrote: "The premise appears to be that the market is irrationally pessimistic,that might be so. Nonetheless, one has to be at least a bit skeptical about the idea that government policy gambling with other people's money are better at judging the value of complex financial instruments than are private investors gambling with their own."

6.John Cochrane and some economists fault the Bush administration and Congress for moving so quickly on the bailout package without allowing more time for debate. That sentiment was reflected in the petition.

7.Simon Johnson said: "You only show up if you can win, and this is not that package. This cannot be the ultimate,decisive solution if you are not addressing the underlying cause."

8.Myron Scholes said: "I would like to see how they see the evolution of an end game. There are still many questions. How long the government holds the assets and how they are later resold would be the keys to determining whether the plan works."

My comment: The above are the "varied-hands" of economists in the light vein with humor.("Ba xian guo hai" in Pin Yin for fun i.e. eight celestial being crossing the sea) The final outcome may take weeks,months or years to see the empirical evidence. I said.

Francis Shieh a.k.a. Xie Shihao,a lifelong student of economics to learn from the views of other economists. Sept. 27, 2008 at 7.16 a.m.