Comments on: The Bailout: Yes, But Will It Work? http://baselinescenario.com/2008/10/15/the-bailout-yes-but-will-it-work/ What happened to the global economy and what we can do about it Sat, 11 Feb 2012 08:48:43 +0000 hourly 1 http://wordpress.com/ By: Chris http://baselinescenario.com/2008/10/15/the-bailout-yes-but-will-it-work/#comment-279 Fri, 17 Oct 2008 19:26:24 +0000 http://baselinescenario.wordpress.com/?p=623#comment-279 If we have gotten to the stage that bailout is a viable option for large insurance companies and banks, where do we draw the line where the free market regulates poor business decisions (aka business closure, etc.)? We have stepped over a very dangerous line underwriting fiscal irresponsibilty by mortgaging our children’s futures. Is socialized banking next on the agenda? Given the runaway national debt that our federal government conisders acceptable, this is hardly the board that we need running our top finaincial institutions!

]]> By: Dan http://baselinescenario.com/2008/10/15/the-bailout-yes-but-will-it-work/#comment-240 Wed, 15 Oct 2008 17:43:21 +0000 http://baselinescenario.wordpress.com/?p=623#comment-240 Well Felix, that would be where regulation comes in. Besides, we already looked into the abyss and may yet slide straight down.

Instead of worrying about moral hazard, we ought to worry about paying down the National Debt. I mean, the whole system only works to the extent that “The Full Faith and Credit of the United States” actually has any meaning.

]]> By: Felix http://baselinescenario.com/2008/10/15/the-bailout-yes-but-will-it-work/#comment-235 Wed, 15 Oct 2008 11:00:56 +0000 http://baselinescenario.wordpress.com/?p=623#comment-235 Well, bailout may work for this time, but there is threat that it will cause stronger crisis in the future, since such actions create moral hazard and banks become more willing to undertake high risks to get higher returns.

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