In my opinion

the only reason to bail anyone out is to make sure that the credit markets do not collapse. If businesses or individuals cannot get short term funding—to make their payrolls, to have adequate working capital run the business, etc–then we are all scr3w3d.

There is no other reason to bail anyone out. The hard issue here is figuring out how much economic activity will contract without the bailout. And how much of that contraction is driven only by the financial market is anyone’s guess right now.

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