I gotta say that keeping BS from taking down the economy was an appropriate action, and that as a taxpayer (well, not lately) it was in all of our best interests for the Fed and Treasury to intervene, even if it costs us more on April 15th.
The part that bothers me is a) they are lying through their teeth about nearly every facet of the deal, and b) the people who causes the problem are not simply getting away scot-free, but are groaning under the weight of all the money they are lugging off.
I won’t disagree about those at fault...Congress, banks, stupid borrowers, investment banks, bond insurers, rating agencies and insurance commissioners. All of them lost their senses and we are paying the price. Its beyond me however that others can’t seem to understand how dangerous the BS default would have been. It went way beyond the sub-prime mortgage market. Money funds, munis, derivatives at least.
So then why was it an appropriate action again ?
Those who are causing the problems are being rewarded and will certainly do it again.