Scary Movie 2008/Black Helicopters

If worst comes to worst, Milton Friedman apparently said, you can end liquidity crises by throwing money out of helicopters. This is pretty much what Ben Bernanke has been forced to do. Is it working?

Paul Krugman is not especially optimistic. Sometimes a liquidity crisis isn't just a liquidity crisis - it can be a solvency crisis too. If all those banks owe more than they can pay, who should - who can - bail them out?

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