Professor Elam

This author argues that if Bear Stearns had not been rescued, a larger crash would not have happened. 

 Well the better read is the comments show to the article. AS the first post says, that way the fails would have happened the next day all over the world, and it is hard to see how the big banks and FNM FRE AIG are any better under either scenario. 

Something that would have let companies and govts know they will not be rescued would at least have forced them to mend their own fences. I suspect that is going to happen as I have reported here in states and cities across the US this year. Even the $4 trillion promised in Barney's latest plan will not rescue everyone. 

In 1976 President Gerald Ford said not to a New York City Bailout, while NYC did get some help at least it brought the crisis to a head, the comptroller of JC Penny came in for a year to help straighten out the accounting, and NYC at that time stopped making promises to unionized city employees. 

All that was then, now we are right back there again but on  a much larger scale. California, AZ, Michigan, NYC, all broke, unemployment benefits have been extended as emergency payments, will that last all the way to the November elections?

GM finally imploded as it and Chrysler ran out of cash, just as Bear Stearns did. This same scenario will play is playing out across the country now. Worse the Fed govt is trying to pay off union support with ever more debt, when will this house of cards finally crash?