Treasury abandoned market-designed asset auctions for direct capital injections

Evidence

By the end of October, Paulson canceled the auctions and instructed his staff to concentrate on capital injections instead. When markets judged the prospective market-based program to be faulty, the Treasury heeded the markets, not the economists. — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 860

Categorization

• XREF: connects to: Investor-style valuation techniques now shape public policy with coercive force — Ève Chiapello, Financialisation of Valuation, 108; Treasury officials engineered auction outcomes to avoid exposing banks as insolvent — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 852