Who Should Bail Out the Banks? MeltzerAllan 2005 <p>The title of this session asks: "Who should bail out the banks?" The simple answer is "no one". I could give that answer and say no more, but there is more to be said.</p> <p>Let me begin by discussing what I mean by a "bail out". A "bail out" implies that there are going to be losses. Banks are experiencing losses — a shrinkage in the real value of their assets. I don't suppose one needs to dwell on that subject in Texas at this time.</p>