Dave: I don’t know if you’ve seen or read Andrew Sorkin’s new book, “Too Big To Fail”, but its an interesting read (a BIG, interesting read at 600+ pgs).

I bring it up because, as the book makes clear, the various programs intended to stave off financial disaster were, for the most part, seat-of-the-pants endeavors by the various government agencies and players.

I think what we’re seeing now is the Great Unwinding and the attempt, by these same agencies and players, to ensure as much of a soft landing as possible, whether its in CRE, RE or banking and finance.

I know there are many out there that advocate the “fuck ’em, let ’em fail” approach, but I don’t. Yes, it probably is the healthiest thing over the long haul, but the fact is that the short- to mid-term destruction would be nearly catastrophic.

Should the FDIC simply pull the pin on all non-performing assets? I don’t think its wise and I agree that the moral hazard aspect is outweighed by the concomitant implosion of hundreds, if not thousands, of lending institutions. That’s why I favored Bernanke’s approach, even while agreeing with him when he said he “held his nose” during the AIG bailout.

Of course, I might be completely wrong, but I get the sense that the approach up to this point, wrong-headed as it might have been, sure seems better than the alternative.