Reasons to Scoff at a Bailout
September 28, 2008 – 10:52 pm by BHCasey B. Mulligan, now a blogger, writes:
The non-financial sector today looks nothing like it did in 1930. The weak correlation between asset prices and non-financial sector performance and the strong profitability of today’s non-financial capital are two good reasons to scoff at the idea that the non-financial sector will collapse because of the recent events on Wall Street, and even better reasons to scoff at the Bernanke-Paulson-Bush idea that a massive bailout of financial firms is the key to avoiding a non-financial collapse. Wall Street’s woes are and will be largely limited to Wall Street.
His new blog is cited all over the web, but credit has to go to AS for bringing it to my attention. I just got back from a brief vacation to find my inbox full of emails on why we should let Wall Street burn.
