If government is willing to violate a contract only a month after passing a law stating that government will uphold that contract, why would anyone believe promises made by government?
Such loss of faith in the word and bond of government will of course make everything worse.
Repudiating the AIG bonuses is an excellent way of killing any method of rescuing the banks. Doesn't achieve much else though.
For example, this on the face of it sensible plan will not work if investors believe that any profits will be taxed at extortionate rates.
Yes, we're in a recession. So worth asking perhaps, "What has capitalism ever done for us?"
A quote on a quote of the day: "In other words, capitalism gets the job done, other systems don't."
And finally, how health and lifestyle issues are decided these days (naughty words alert).
