Who Should Bail Out the Banks?

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.

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.