Enough is enough. What we were told last fall is it's not a bailout, but a "rescue." None of them seem to care about causing, eventually, the public to need a rescue. That is where this eventually will end up unless the bleeding can be stopped. And that won't be pretty.
Krugman is correct:
A better approach would be to do what the government did with zombie savings and loans at the end of the 1980s: it seized the defunct banks, cleaning out the shareholders. Then it transferred their bad assets to a special institution, the Resolution Trust Corporation; paid off enough of the banks? debts to make them solvent; and sold the fixed-up banks to new owners.We must now insist that the greater public good is more important than keeping Big Bank shareholders whole.
Comments