Thursday, September 25, 2008

Weird Times

We are certainly in some weird times when I'm agreeing with (some) of JK Galbraith's editorial in today's Washington Post.

Now that all five big investment banks -- Bear Stearns, Merrill Lynch, Lehman Brothers, Goldman Sachs and Morgan Stanley -- have disappeared or morphed into regular banks, a question arises.

Is this bailout still necessary?

The point of the bailout is to buy assets that are illiquid but not worthless. But regular banks hold assets like that all the time. They're called "loans."