Tuesday, October 21, 2008

The Wrong Answer to the Wrong Crisis

Anna Schwartz wrote the book on the last great banking crisis. That book was called "A Monetary History of the United States," and it was co-authored by the far more famous Milton Friedman. She says the bailout would have worked if it forced banks to take serious write downs on junk assets and allowed imploding banks to fail. Unfortunately we're doing the opposite.

Apture