TARP has made things worse, not better:

To the extent that huge, interconnected, “too big to fail” institutions contributed to the crisis, those institutions are now even larger, in part because of the substantial subsidies provided by TARP and other bailout programs.

To the extent that institutions were previously incentivized to take reckless risks through a “heads, I win; tails, the Government will bail me out” mentality, the market is more convinced than ever that the Government will step in as necessary to save systemically significant institutions.

Yes, those who don't learn from history are indeed doomed to repeat it.

Indeed.

Posted by: fairwhether at 10:53 PM | No Comments | Add Comment
Post contains 106 words, total size 1 kb.