Thursday, February 28, 2008

No Bailout
Here is an article on the Bush Administration's reluctance to bailout the mortgage industry. I agree. This is the banks' problem and they are going to have to fix it. Banks made reckless loans and should not be rewarded with a taxpayer bailout. Here is a post from Greg Mankiw's Blog with a solution posed by Larry Summers. I like the concept - banks cut the loan amount and share in the equity.

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