You Got to Be Kidding Me!

Not Every Bank Is Failing

Posted in Economics by Stacy McMahon on September 28, 2008

This is interesting – the CEO of BB&T Bank, which is apparently doing just fine, is sending an open letter to Congress concerning the proposed bailout plan. I’m on the fence about this bailout. If it’s really true that short-term credit markets could come to a standstill, then it’s worth a lot of egg on our collective faces to avoid it. If not, there’s no rational reason to bail anyone out.

Anyway, many good points at the link (via Instapundit) My favorites:

there is no panic on Main Street and in sound financial institutions. The problems are in high-risk financial institutions and on Wall Street.

[…]

It is extremely unclear how the government will price the problem real estate assets. Priced too low, the real estate markets will be worse off than if the bail out did not exist. Priced too high, the taxpayers will take huge losses. Without a market price, how can you rationally determine value?

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