The NY Times blog has the best summary yet of the current financial crisis here: Diamond and Kashyap on the Financial Crisis. Money quote:
"A reasonable reading of the recent bailouts suggests a simple rule: if a firm is on the verge of collapse and its ties to the financial system will lead to a cascade of chaos, the firm will be saved. A bankruptcy will be permitted only if the failure can be contained."
Evidently, with a new RTC in the works Paulson, Bernanke & Co., are telling us it's getting harder to distinguish between what might cascade and what can be contained.
Yes, I agree that this report has highlighted Best Summary of the Financial Crisis.Thanks
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Posted by: energy stocks | April 27, 2009 at 02:30 AM