Check Credit Market To See If Bailout Works
Professor Kenneth E. Scott is quoted in a San Francisco Chronicle article about whether the Wall Street bailout is going to work:
"When I don't know the prices, I start to worry about solvency," says Stanford Law School Professor Kenneth Scott.
These securities were sold to investors around the globe, which was supposed to spread the risk, but is now spreading the fear.
"When it is spread in this complex fashion, you don't know how large the losses really are and you don't know who holds them. So people get very, very cautious," Scott adds.