I’ve been against bail-outs from the beginning.  So should have all economists.  It’s reasonable to debate the merits of contracyclical monetary policy.  It’s not reasonable to debate the merits of rewarding failure on a grand scale.

Alas, in “practical politics” almost no one’s interested in figuring out whether we took the wrong course two years ago.  Instead, it’s all about the latest crisis – and the next crisis on the horizon.  It really does seem like the crises just keep getting bigger: Wall St., Greece, then what?  Italy?

My point: One bailout seems to lead to another, but bailouts have to stop eventually.  What begins as “too big to fail” eventually becomes “too big to save.”  So here’s my question: Where will the line be drawn?   Who’s going to be in the water when the “sink or swim” verdict finally comes in?