The federal government hopes to set aside as much as $700 billion to take responsibility for the risky mortgage assets weighing on the nation's financial institutions.
The administration proposal would be the biggest government intervention since the Great Depression. ome economists worry that the White House and Congress, in their haste to stave off a crisis, may create an even larger crisis down the road.
Sebastian Mallaby wrote about the long-term implications of such an intervention in "A Bad Bank Rescue" published Sunday in The Washington Post. Mallaby is the director of the Center for Geo-Economic Studies at the Council on Foreign Relations.