Did the Bank Bailout Make the Grade?

In an extremely useful feature, The Wall Street Journal has surveyed a dozen economists about the treasury’s new plan to recapitalize the banks. The verdict is nearly unanimous: It’s good! “It wasn’t just the right move, it was the only move,” says Kenneth Rogoff of Harvard. The main quibble seems to be that the government is buying nonvoting preferred stock instead of voting common stock. “If we are going to entrust the banks with taxpayer funds as part of their equity,” says Barry Eichengreen of Berkeley, ”then the taxpayer should have a vote.”