Posted by
On the Right on Friday, August 31, 2007 11:59:30 PM
Bush and Bernanke set the right tone. Read it here.
We're pleased to see that both the White
House and Fed are willing to take action to make sure the subprime
lending crisis doesn't get worse. But we're also glad they understand
they can't do everything.
That's why we were heartened to hear
Bush add the following: "The government's got a role to play. But it is
limited. A federal bailout of lenders would only encourage a recurrence
of the problem."
And this, from Bernanke: "It is not
the responsibility of the Federal Reserve — nor would it be appropriate
— to protect lenders and investors from the consequences of their
financial decisions."