We have updated our Terms of Use.
Please read our new Privacy Statement before continuing.

Misallocation of capital

2 October 2008 By Martin Hutchinson

The US plan to rescue ailing banks will invest up to $700bn in distressed mortgagerelated securities and other loans. In a credit crunch, that will crowd out others more deserving of funding. That could deepen the economic slowdown, and is certainly likely to extend it.

This content is for Subscribers only

 

Email a friend

Please complete the form below.

Required fields *

*
*
*

(Separate multiple email addresses with commas)