Bernard Madoff, Too Big To Fail?

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Writes Tim Swanson:

Bernard Madoff is too big to fail. If his firm is allowed to go bankrupt it will cause a domino effect that will destroy foreign investor confidence and eliminate thousands of auditing jobs. With any luck, on Tuesday Chairman Bernanke will not only cut rates but also take all of the toxic assets off the books of BMIS. And if Paulson and Congress act swiftly enough, they can utilize the other half of the TARP funds to restabilize his business model and keep the system from feeling this hiccup.

While I am against bailouts in general, based on a recent study I did on a napkin at a local eatery, American taxpayers will come out on top of this situation with a handsome profit. After all, nothing spells success like never failing. And it would be a national travesty and tragic precedent to allow that to occur now. Besides, this is what Keynes would want, right?

11:17 am on December 14, 2008