A Behavioral Trap Threatens Fed in Detroit
Becky Antworth, The Christian Science Monitor | December 5, 2008
Pouring Fed money into the car-makers of Detroit is tempting. ++ If they slip, "a myriad" of other companies depending on them will fall. ++ But if the Fed bails out car companies, credit card companies will come begging, after which come "makers of dog polisher and electric banana straightener." ++ A bail-out will commit the Fed to spending more if $25bn turns out not to be enough. ++ "Before taking a course of action, one must explicitly consider the costs of continuing it, and the costs of abandoning it, should things turn sour."
