The following was posted this morning as a comment on the bailout:
"Us YAHOOS from the middle of the country, now investors in the west, don't understand how "rational" has come to mean "short term range-of-the-moment." All the game theory in the world does not a chess match make of the economy.
What you are asking us to believe is that assets that nobody wants, or that they do but they are waiting on the government to save them the necessity of taking the risk themselves, are now going to be handed to the government at the cost to the taxpayer of any amount -- it could ultimately cost much more and would undoubtedly be newly printed inflationary paper -- just to do two things, neither of which is in our self-interest: bail out those CEOs etc. that don't want to take the risk, or the home owners who "have to stay in their homes." Why? I have yet to hear a rational answer to that question. "Because we face a financial disaster if we don't" is not one such. We are in a financial disaster and throwing this fiat money at it won't make it go away. Why? because it rewards incompetence and if there is anything we don't need is more of that."
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