Monday, November 17, 2008

Bailout or Bankrupt?

Jeffrey Sachs has a good point

Who will cover those contracts? Personally I would rather bailout one company to keep the satellite industries relying on the business safe than to let the big 3 fail and see the unemployment rate and unemployment benefits enrollment rate rise to a level that could very possible be unsustainable.

Normally I would call against a bailout for moral hazard reasons...but a bailout seems more logical than bankruptcy

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