U.S. Joint open letter hundred economists question the financial rescue plan.

<P> U.S. Treasury Secretary Henry Paulson's plan is not only government intervention in the financial crisis triggered a heated debate in American Congress, has also been questioned by economists from the United States. .September 23, one by more than 100 economists signed a petition in the U.S. "To open letter to both houses of Congress," published on the Internet that the three shortcomings of Paulson plan, and calls upon Congress to be carefully considered. .</ P> <P> "We are a group of institutions in the United States and research institutions and scholars." Activities of the joint open letter to one of the sponsors, Kellogg School of Northwestern University, Associate Professor of Finance Paula La Sapi .Enzha to the "First Financial Daily" reporters that any action that the public organizations and groups of background, in addition to the joint activities, has not initiated any action. .</ P> <P> 9 22 afternoon, 约翰科克伦, 阿尼尔卡什 Yap, Robert Xiamo, Luigi Zingales and Bao 拉萨皮恩扎 other five .economists drafted a draft letter, and began collecting signatures among economists. .</ P> <P> by the initiator of the contact, and economists blog's reprint of the letter widespread among economists. .As of press time, the network version of the letter (http://faculty.chicagogsb.edu/john.cochrane/research/Papers/mortgage_protest.htm) has 123 joint economists, including Nobel Prize in economics in 2000 .Prize winners and other famous economist James Heckman Stauch. ."There are more than 150 economists signed the letter." Sarpy Enzha confirmed to reporters. .</ P> <P> open letter to Paulson plan specifically criticized the lack of fairness, in the vague on many important issues, and questioned it in the long run will weaken the U.S. capital markets. .</ P> <P> "This letter represents the views of economists of all joint," Sarpy Enzha said, "We hope that Congress may suspend consideration of, not only to seriously review Paulson's solutions, but also consider other .alternatives. Many of us believe that the current program is not the only solution of this. "</ P> <P> Wharton School of the University of Pennsylvania Justin Wolfers, associate professor in his" New York Times "Web site .blog, said the letter reflects the views to some extent the consensus of economists, as signatories of the letter "includes different views for the current crisis, people - vote for the left and right, or even overseas voters do not vote .people. " .</ P> <P> However, there are point of view, the letter merely repeated a number of longstanding concerns and questions, and no specific, constructive solutions. .</ P> <P> "I would like to see specific proposals and analysis. That it helps to find a solution, rather than 'wait a minute decisions' such a warning. The letter itself is not a bad thing, but it is not .What kind of a big progress from the economics profession. "a signed Bobby G's friends commented. .</ P> <P> some Members of Congress also opposed the implementation of the Paulson plan, mainly worried about "the suffering of the Wall Street spread to all taxpayers," which will house all of the Democratic Party's request the support and executive pay .ceiling of the content included, and some Republican lawmakers have questioned the scope of the scheme can reach and scale. .In addition, the market is also concerned that huge investment will greatly expand the U.S. budget deficit, the dollar and thus the formation of long-term pressure. .</ P> <P> Federal Reserve Chairman Ben Bernanke in the 24 Senate Banking Committee held a hearing to stress again that if Congress does not act soon, will result in the credit market continues to shrink. ."If non-normal operation of financial markets, the unemployment rate will continue to rise, more houses will be foreclosures, gross national product (GDP) will slow the U.S. economy will be difficult to recover." Bernanke before Congress the day .testimony for the Senate Banking Committee, said, "Our purpose is to U.S. economic recovery and growth." </ P> <P> Bernanke also said the global financial markets remain under considerable pressure at. .There is an urgent need for Congress to take action to stabilize the situation, otherwise the U.S. financial market and economic conditions will face serious consequences. .Both houses of Congress scheduled 9 月 26 日 (周五) recess, so Paulson plan was adopted this week is unlikely. .</ P> <P> 9 月 24 afternoon, joint sponsors of the letter has been sent to the U.S. Congress to press time of this writing, Congress has not yet been any response. .</ P> <P> full text of open letter asked the following: </ P> <P> caused by the temporary speaker of the House of Representatives and the Senate Speaker: </ P> <P> As economists, we have expressed to Congress: For the Minister of Finance Paul .Sen made the financial crisis response plan, we are deeply worried. .We know how difficult the current financial situation, we think need to take bold action to ensure that the financial system continues to operate. .However, we believe that the current proposed plan there are three fatal flaws: </ P> <P> 1. Not fair. .The plan is to use taxpayer money to subsidize investors. .Investors who take risks for profit must also bear the losses Caixing. .Not every failure of an investment will lead to systemic risk. .Even those who do not rescue their own poor decisions and institutional investors, the Government has to ensure the normal operation of the financial sector, the credibility of the borrowers to extend new loans. .</ P> <P> 2. Ambiguous. .The plan proposed the establishment of a new body, but its mission and oversight mechanisms are unclear. .If the taxpayer from the seller to buy troubled lack of liquidity and transparency of the assets, then the terms of these purchases, the timing and method of operation must be complete transparency in advance, after the proper supervision. .</ P> <P> 3. Long-term effects worrisome. .If the plan into implementation, the effects will last a generation. .Despite the recent troubled, (http://finance.) United States, dynamic and innovative private capital markets for this country, after all, created unprecedented prosperity. .In order to calm short-term disturbances that fundamentally undermine the market is extremely short-sighted approach. .</ P> <P> For these reasons, we urge Congress not to rush decisions, to conduct an appropriate hearing, carefully consider what is the correct course of action for the U.S. financial industry and the future of the U.S. economy to make informed decisions. .</ P>.