Comments on: A Really Bad Idea

By: Mike G

Mike G — Sat, 10 Jul 2010 06:29:01 +0000

C’mon, is it too much to assume the Treasury won’t internalize the risk of default by assigning a credit rating to each state in distress and adjusting the interest rate appropriately? Yeah, right.

By: Jack

Jack — Fri, 09 Jul 2010 20:25:55 +0000

Playing devil’s advocate, I would argue that his logic is consistent. If it is good to save the banks and to save the auto big 3 (“fending off disaster”) then it would be good to save state budgets too. If one believes the first two were unquestionably good decisions, it follows the third is sensible too. However, as you explain, this completely ignores issues of wildly increasing debt and its consequences, as well as moral hazard.

By: Robert

Robert — Fri, 09 Jul 2010 14:17:46 +0000

I am continually amazed at the sheer hubris and stupidity of those in positions of power. We’re in trouble, that’s for sure.