Interesting how the Bush Admin knew that without an instantaneous and massive bailout the whole US financial system would simply collapse. Yet what I saw was no more than a 10% drop in the stock market -- about 1000 points on a Dow up around 12,000. Lehman went bankrupt, Merrill Lynch got bought, AIG faltered. Supposedly many giant financial institutions were poised to fail, but who knows? How could the government really have know what was about to happen? After all, the one fact behind the whole housing crisis -- the one everyone seemed to agree on -- was that nobody seems to have had a clue where all the bad loans were being kept.
Americans are told that the consequences of inaction would have been dire. Other countries have even been advised to follow America's lead, shoring up their financial institutions with taxpayer money. As for the perils of such action? Later.
Here's the draft bailout proposal. Question: Why is it assumed to be so much better for the government to solve the housing crisis from the lender rather than the borrower side? We all have questions. And eight years' acquaintance with the Decider.