Comments on: Sternly Bashing the Bear Stearns Bailout http://alephblog.com/2008/04/29/sternly-bashing-the-bear-stearns-bailout/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sun, 12 Feb 2012 22:02:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jeffhttp://alephblog.com/2008/04/29/sternly-bashing-the-bear-stearns-bailout/comment-page-1/#comment-17517 Jeff Tue, 29 Apr 2008 18:47:13 +0000 http://alephblog.com/?p=670#comment-17517 There may have been better plans, perhaps including yours. We would do well to remember the crisis atmosphere of the weekend where this was worked out. The situation developed quite rapidly, and the response was speedy. It needed some adjustment afterward, as we saw. Governments do not have contingency plans for all events. Even those they have may not work well in many circumstances. (Neither do businesses). Reinhart has a political viewpoint and the luxury of pontificating from a think tank. Those making the decisions have a larger responsibility. Since we can only imagine what would have happened in the absence of prompt Fed action, there is no good method for evaluating the policy. There may have been better plans, perhaps including yours. We would do well to remember the crisis atmosphere of the weekend where this was worked out. The situation developed quite rapidly, and the response was speedy. It needed some adjustment afterward, as we saw.

Governments do not have contingency plans for all events. Even those they have may not work well in many circumstances. (Neither do businesses).

Reinhart has a political viewpoint and the luxury of pontificating from a think tank. Those making the decisions have a larger responsibility.

Since we can only imagine what would have happened in the absence of prompt Fed action, there is no good method for evaluating the policy.

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