A follow-up to the last bailout post: What exactly do opponents like Cavuto think/hope will happen if we don’t rescue mega-banks like Citi? It’d be one thing if they believed everything would resolve itself after some sort of correction, but my hunch is that they expect the worst-case scenario — a depression with unemployment in the double digits — and greet it as somehow salutary, as a necessary lesson to Americans about spending habits and to financial institutions about recklessness. Maybe I’m wrong. Bailout naysayers, explain to me again why we shouldn’t be doing what we can to forestall a systemic collapse by injecting huge amounts of capital into the market. Granted, it might not work, but if you’re using hoses on a fire hoping to put it out, you’ve at least got a chance. Going the laissez faire way this time feels like standing there and watching it burn, hoping against hope it’ll burn itself out. While reading “The Road to Serfdom,” natch.

Tags: unemployment