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How to get the bailouts right
ritcha 03/19/2020 04:13 AM CST

Something unprecedented is coming. Congress has no choice but to hold its nose and approve bailouts for giant companies such as Boeing, Marriott and other hotel companies, all U.S. airlines and perhaps hundreds or thousands of other companies suddenly under severe financial stress.The Trump administration has proposed $50 billion in loans for reeling airlines that suddenly have no passengers. Other travel industry firms are in the same sinking boat and lining up for similar aid. There will be hundreds of billions of dollars in aid for smaller businesses, and outright checks for ordinary Americans. Congress must approve all of this and probably will by April.But there are right ways and wrong ways to do bailouts, and the 2008 financial wipeout was a crash course in what to do wrong. Back then, officials in the Bush administration, and the Obama administration after them, knew they had to flood big banks with money to keep the financial system from seizing up. Banks are the circulatory system of the economy, and without them, the patient is dead. But the effort to save the financial system back then was so frenzied that policymakers orchestrating bailouts and Congress passing the necessary laws overlooked many safeguards. Read more >>slotxo