Thursday, September 18, 2008

What's The Policy On Bailouts?

Via Andrew Sullivan, a quote from the NY Times:

“It’s pure crisis management,” Mr. Chernow said. “It’s the Treasury and the Federal Reserve lurching from crisis to crisis without a clear statement on how financial failures will be handled in the future. They’re afraid to articulate such a policy. The safety net they are spreading seems to widen every day with no end in sight.”

Bingo!

That's why allowing these kind of economic crises to occur is such poor policy.

In the real world, we need some agreed upon rules and regulations to keep this kind of crisis from occurring. If we don't, get used to occasional bailouts.

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