A Yale law professor looks at the Continental Ill. bank bailout versus the Bear Stearns bailout. The differences are important. FDIC was never created to save brokers but commercial banks. Should they? The prof suggest what will result, a round of mergers to get firms on Wall Street 'too big to fail' knowing the govt will rescue them from whatever madcap scheme they get themselves into.
Peter Schiff argues that the sooner we let the markets fix themselves, the sooner they will. Prices must get to an equilibrium. Efforts to 'force' prices to be artificially high will not last for long.
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