Posted by
m0t0r1zed on Wednesday, October 01, 2008 11:00:33 PM
if i were a bank, why would i lend out money and expose myself to risk when i know that gov't is gonna bail me out? and if i think that congress might pass another bailout bill, why shouldn't i wait a little longer to see if there's another one on the way with even better terms?
not an economist, but wouldn't knowing that congress will bailout my bad loans make the credit crisis worse?
doesn't congress leaving the door open to further bailouts make the crisis linger?
wouldn't the proper way to get the banks lending again be to help businesses find alternative sources of credit and financing that compete with banks?
dunno ...