[Tublecane]

“If AIG failed, it would set off a domino effect across the insurance industry and the cost of lost equity to TAXPAYERS would be infinitely larger than $85 billion.”

Good! All of our economic woes stem from bad investment due to credit expansion. We need an economic contraction to sort things out. So long as the fed keeps bailing people out, we are only prolonging the crisis.

[Lucius Cornelius Sulla]

We need an economic contraction

This is called a depression, and I disagree.

[garbanzo]

All of our economic woes stem from bad investment due to credit expansion. We need an economic contraction to sort things out.

While true, no one wants the contraction to happen on their watch because the public has been fed the belief that the business cycle can be conquered and that recessions are the work of malevolent politicians. So we keep kicking the can down the road.

[calcowgirl]

We need an economic contraction to sort things out. So long as the fed keeps bailing people out, we are only prolonging the crisis.

Bump to that.