Congressional leaders yesterday gathered support for aggressive changes to bankruptcy laws that would help troubled homeowners, even as the Bush administration threatened to veto the plan and emphasized its opposition to any program that would risk tax dollars. (Washington Post, Wednesday)
Until the regulators understand moral hazard, these crises will occur.
FEE Timely Classic
The U.S. Banking Debacle of the 1980s: A Lesson in Government Mismanagement by George G. Kaufman