Commentary: Bankruptcy, not bailout, is the right answer –

“Commentary: Bankruptcy, not bailout, is the right answer”

Commentary on the 700 billion bailut and why it’s a bad idea.

The author blames the bad mortgages of Fannie Mae and Freddie Mac, which are indeed responsible for the current crisis, but the problem runs deeper than that, and in my opinion lies in the very way in which banks have been allowed to lend money with an ever increasing difference in the asset / loan ratio and their move away from responsible asset-based lending – yes a bank can repossess a house if necessary, but who the hell can buy them in a recession?