I’m not supporting “No Banker Left Behind”. I feel incredibly conflicted and am morally disgusted with the bailout. Just saying it’s not an easy issue, and hard to paint in partisan terms — Dems did this, Reps did that, etc. These are not ordinary times.
If it matters, I’m absolutely for Bailout version 2.0 over version 1.0, the “European Version”. US Govt should receive equity in troubled banks with the opportunity to liquidate holdings once the markets regain footing. This is slightly less disgusting than relieving banks of bad loans. Both solutions are pretty much awful though.[/quote]
Each bailout is pretty horrible and each is designed to reflate the bubble. It’s likely that each bailout will fail. If the bailouts “succeed”, it willl likely lead to hyperinflation in the long run.
To me, it seems all that’s needed is some full-reserve banks to deal with short-term business transactions. I believe CA Renter made this suggestion the other day. There’s no reason the taxpayer should be on the hook to fund the profits generated from businesses “sophisticated cash-management techniques”.
