Ed Huntress wrote:
"F. George McDuffee" wrote in message
...

As usual Krugman asks the right question and then quits.

"So here's the question we really should be asking: When the feds
do bail out the financial system, what will they do to ensure
that they aren't also bailing out the people who got us into this
mess?"


I don't think he knows the answer to that.
But *** I *** know the answer (and I'll be the rest of you
reading do, too)! Basically, nothing will be done. The whole
crappy situation is institutionally entrenched. They've built
this house of cards over decades, and NOBODY quite knows how to
take it apart without the whole thing falling down. It will
take YEARS of Congressional hearings and the passing of new laws
to stop these practices. A bunch of companies will likely go
down the tubes like Enron, when it is found there is DAMN little
actual value in all the paper they are holding. Hopefully, we
won't have a run on banks like what started at Bear Stearns, but
a run on investment and commercial banks could make what
happened in 1929 look like a party! I mean, if GM suddenly
can't issue paychecks, it could get "serious". And, it could
happen pretty suddenly, the way everything is online now.

Jon