Best Summary Yet of the Financial Crisis

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.

Comments

[rentetarieven hypotheek]

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[energy stocks]

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