VRWC
2008-09-24 11:26:45
All of this talk about disliking the bailout on the “principle” of moral hazard misses the point.
The mortgage paper that we are bailing out is owned by every bank in the country, not just Lehman and AIG.
That paper was bought with depositors money. That money is already insured by the Feds thru FDIC. The only difference is that commercial banks can’t leverage up as much as investment banks, but they would still fail.
So, you want one big bailout now? Or 5,000/10,000 bank bailouts and a totally trashed economy later?
