David B. Shemano wrote: > Yes. Bankruptcy and the threat of bankruptcy would have quickly resulted in > a painful but necessary reallocation of resources from insolvent institutions > run by idiots to more stable and better run institutions. Instead, the > government is presently reallocating resources to the insolvent insitutions, > thereby delaying necessary consolidation at best and creating zombie banks at > worst.
this ignores the role of external costs: when Lehman Brothers bit the big one, it seems to have caused and instant deepening of the world financial crisis. Or maybe that's a good thing? -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
