Now, according to the Bush administration, it turns out:
"THE GOVERNMENT IS THE SOLUTION"!!!
Who would have guessed it?
Not everyone agrees:
Allan Meltzer on the bailout
Allan H. Meltzer, Carnegie Mellon University professor of political economy and the author of several books on monetary policy and economic history, including his multi-volume A History of the Federal Reserve, was interviewed yesterday on the News Hour with Jim Lehrer and agian today on the News Hour along with Paul Krugman, who also has misgivings. In the interview Meltzer discusses the Fed's recent decision to bailout the failing insurance giant AIG, and "what the tumultuous week on Wall Street means for the country's financial health." Download the archived video at the News Hour website.
Mr. Meltzer says, at best, the government could make loans, which would have to be paid back with interest by these financial institutions, and that dividends and bonus can not be paid until the loans are paid back.
Mr. Meltzer be one of the few free market advocates who is not currently hiding under a rock.