Economists for the Paulson Plan

Economists Defending Paulson PlanPolicymakers battling the approval of Paulson’s bailout package have taken pride in throwing around the names of a large list of the top academic economists who wrote a letter to Congress stating their opposition to the plan. Indeed, Sen. Shelby mentioned this yesterday as he left the White House. However, don’t be misled to think that all economists are against the bailout. Indeed, most are not.
Greg Mankiw posts today a note (from an economist) stating that while most of the economists from academia are against the bailout, the majority of Wall Street economists are in support of the Paulson Plan.

Call me crazy, but I am more likely to listen to economists that work in the markets day in and day out, as opposed to those who even though they are very qualified to speak on the markets, they might not be as familiar with what is really happening in the markets on a day-to-day basis.

NOTE: This post was originally published on my blog at www.marktomarket.typepad.com.