06 October 2008

Sledding down the slippery slope

Mr Dooley reads the paper:

08:52 Facing shortfall, Massachusetts inquires about a Federal loan - NY Times

NY Times reports the Massachusetts state treasurer has asked the federal government about lending the state money under the same favorable terms given to banks and investment firms during the financial crisis ...

Call me old fashioned, but wasn't this result perfectly predictable [to the Fed, to Treasury, and to the Joint Economic Committee], once starting down the 'moral hazard' path?

It is too early for strong drink, but ...