Wednesday, September 24, 2008

Pattern recognition

Good comments on the live Bernanke testimony this morning at

Comrade Sue: "Remember 'Iraq will pay for itself'?"

Weather Helm: "I'm stunned more people aren't comparing this fear-mongering to the Iracle debacle. Watching this is like watching Colin Powell's address to the United Nations about Saddam's bio-warfare labs."

Here's a tougher one. Imagine what happens when the full moral-hazard phenomenon kicks in, and people start advocating ending this kind of bailout. That's when you will start hearing the arguments we're now hearing for staying in Iraq just a little longer. To wit:

"Sure it was a bad idea and Congress was stampeded into approving it in an election year. But we've created a situation here and we can't just exit just like that. We need to be 'responsible'"... Which in the case of the Wall St bailout will take this form: "This kind of government support has become the norm, and we can't end it too abruptly because it will cause 'the markets' to panic". So it goes.


Anonymous Anonymous said...

Yes. So it goes. Like Kurt V. I'll miss you a lot. Thanks for the links.

11:22 PM  

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