Re: 'Remember, the US under Rubin spent billions bailing out people who bought Mexican bonds'...
Yes, just as we did in the Reagan admin. when Brady was at the Treasury, the so-called 'Brady Bonds'.
Point is, both times (and also - which I hate to admit for reasons of political purity - the Chrysler bailout) the bailouts worked. They achieved their objectives. Crisis was calmed, money paid back, disaster averted.
It may, in fact, have been better in the long run to have not rescued any of these investors, any of the times. To not pick and choose winners, to not say that some industry, or group of investors is 'too big to fail'... because for sure we never say that about the LITTLE investors or businesses... still, in all three of these cases, they can be counted as short-term wins. |
