Strange Days Indeed

Tue, 24 Mar 2009 17:13:04 +0000

It is not often that I find myself in total agreement with the editorial board of The New York Times, but here you go:

In other banking crises, both in this country and abroad, resolution of a systemwide problem has sooner or later involved separating solvent banks from insolvent banks. In the end, there is no getting around firing the executives at failing banks, acknowledging the losses, wiping out the shareholders and then deciding how the government can best restructure the institutions. The Obama administration has yet to explain why its approach is better than that.

No more bailout in lieu of bankruptcy.