On one side we have Japan: a 10+ year depression caused by the government bailing out every Tom, Dick, and Harry that got burned by lending money before a real estate market collapse.
On the other side, Nancy Pelosi and George Bush are telling us that there will be Hell On Earth (tm) if we don't bail out every Tom, Dick, and Harry who got burned by lending money before a real estate market collapse. Excuse me if I think we're going down the wrong road.
You don't cure a hangover by handing out vodka, and you don't cure too much bad loans by handing out more loans. You close the loans, and start over. The credit markets don't need quantity, they need quality.
Monday, September 29, 2008
An important comment
Megan McArdle has all but abandoned libertarianism to support the bailout. On the post So what happens now?, I noted:
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