“It has been abundantly obvious from day one that Ben Bernanke has no understanding of “liquidity” – whatsoever.” If you are the Secretary of Treasury or the Federal Reserve Chairman and people have no demand for federal instruments (and foreign demand for Treasury instruments is apparently shrinking), you have a major problem…
Over at the Mises Institute, George Selgin pins the major blame for the current problems on Alan Greenspan’s loose monetary policy. He is also admirably professional about the individuals whom he critiques. Related is this Richard Ebeling piece.
John Hawkins has a nice summary of the failures of the bailout and how this is turning into the next step of bailouts.
Here is (via the Belmont Club) Arnold Kling talking with Russ Roberts about the issue. I give both of them the highest recommendation possible. And Wretchard has another post on the Principal-Agent problem inherent in the bailout. Quick: how much do you think Hank Paulson is going to get after he resigns?
