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Anderson Cooper 360: Bailout Turmoil « - Blogs from CNN.com
ac360.blogs.cnn.com - 9/29/2008
Anderson Cooper 360: Bailout Turmoil « - Blogs from CNN.com
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Editor’s Note: Susan Lisovicz is CNN’s primary correspondent on financial news. She is most frequently seen from the New York Stock Exchange (NYSE) reporting on the latest market and business news. Today was a day on Wall Street unlike any other. Susan shares her view from the center of it all: ...

Blog Reactions

The Volokh Conspiracy:  Why the Stock Market Drop Doesn't Prove that Congress was Wrong to Reject the Bailout:

Ace of Spades HQ:  Where's That Credit Crunch?

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Blog Reactions

Why the Stock Market Drop Doesn't Prove that Congress was Wrong to Reject the Bailout:
The Volokh Conspiracy — ... the outcome is good for the larger economy because we will not have a massive orgy of wealth transfers from successful industries to failing ones, nor will we create a serious moral hazard by signalling that firms that make overly risky investments that fail can expect to be bailed out in the future. Past history shows that stock market drops, even big ones, don't necessarily cause longterm damage to the economy. Today's drop in stock values, while the largest in absolute terms, is not even in the top 10 relative to total shareholder value . The ...

Where's That Credit Crunch?
Ace of Spades HQ — ... the outcome is good for the larger economy because we will not have a massive orgy of wealth transfers from successful industries to failing ones, nor will we create a serious moral hazard by signalling that firms that make overly risky investments that fail can expect to be bailed out in the future. Past history shows that stock market drops, even big ones, don't necessarily cause longterm damage to the economy. Today's drop in stock values, while the largest in absolute terms, is not even in the top 10 relative to total shareholder value . The 1987 stock market crash was ...