Despite the kind of incendiary nature of the headline, this Q&A with Prentiss Cox (UofM law professor, and one of the principal architects of MN predatory lending law) and Mollie Preismeyer over at the Minnesota Independent is actually quite good.
Look, this is outrageous. I mean, is it necessary to do a $700 billion bailout? Probably. We probably needed to do all of these bailouts. They tried to contain it. It wasn’t containable. So they probably need to do an incredibly bold stroke like this in order to restore the market, pull out the assets, and deal with them rationally. While it’s unbelievable that we got to this place, given that we’re here, a bailout seems to be a rational policy choice.
The agreement across political spectrums on the Bailout (that something has to happen, but the initial shape of the bailout proposal was an abject joke) is astonishing.
On a semi related note: Here’s one of the better breakdowns of where we are with this thing, and why the bailout needs to happen, in some form. And it’s short! [Accrued Interest]