By JLP | October 10, 2011
Reading assignment: Talking Points for the “Occupy Walk Street” Protesters
“…there is a cost to any financial crisis, which is “contagion” where the failure of one institution or government calls others into question. The main way to contain this is to follow the century-old “Bagehot’s Rule” – lend freely, at high rates of interest, but only to institutions that are solvent and able to provide collateral for the loans. When policy makers behave as if every institution, solvent or not, is within the ring-fence, or that some institutions are simply “too big to fail,” saving these institutions comes at enormous costs, because true economic losses that should properly be taken by private investors are instead forced upon the public.”
To the protesters, I would like to add that sleeping in filth and defecating on police cars only makes you look like immature losers. GROW UP!