[lbo-talk] Discussing the Crisis/Bailout

James Heartfield Heartfield at blueyonder.co.uk
Mon Oct 6 12:56:01 PDT 2008


John says, Can you point me to a "very good" argument against the bailout?

I am tempted to say that I can think of seven hundred billion good arguments

But how about

it won't work it avoids addressing the underlying problem it rewards the institutions that created the problem it increases moral hazard it is more of the same extension of credit that fuelled the problem in the first place it deepens the US economy's dependence on credit it puts off the problem to tomorrow it damages the credibility of the US economy it damages the credibility of the US government it damages the credibility of the US financial sector

Not to say that I have a better idea, but just because this is the only idea on the table, does not mean that is a good one.



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