I don’t agree with a bailout, but the debate he proposes is comparing the financial, specifically mortgage industry to the manufacturing -car industry. This is where the problem starts. All the economic models and theories…do they distinguish between these markets and whether they function the same? Obviously they exist for different purposes. Maybe they are the same if it were truly free market. But not when interest rates are manipulated, etc. by the gov. I don’t have a lot of knowledge about economics,but from what I read about Greenspan and the theories these “economists” toss around, what they did with the mortgage industry in terms of selling them as securities, seems unethical because it was a certain kind of debt transfer, not an “investment” in a tangible product or service. So Gross is posing the question…why not bail them out like Chrysler? That bailout was a long time ago – and it seems like nothing was learned from it either.
