"the paradox is that the Government wants to make more credit available to reduce the severity of a recession that was caused by a decade-long, crazy lending binge."
- We are now substantial shareholders in several of these banks, and we will benefit too if they return to health
- We are being paid an insurance premium in return for these guarantees
- "The banks" are not an evil cabal who are the deadly enemies of the rest of the economy. They are an integral part of it, and their success enables and contributes to the success of all other companies. Punishing the banks would be cutting off our nose to spite our faces. At most, we may want to further dilute the equity of bank shareholders, and perhaps regulate the rewards of some bank executives; but even that is far from a proven case.