The Motley Fool Gives Us an Optimistic and Sensible View of the Bailout

In the Motley Fool, an excellent daily compendium of economic and financial wisdom, Richard Gibbons provides a common-sense and useful summary of the positive side of the financial bailout.  You can read his article here.  Among Gibbons' useful points are the following:

•  . . . as a country, we can't make decisions based simply on anger or capitalistic dogma.
• . . . regulation is necessary to reduce systemic risk.  Unfortunately, our regulators disliked regulation, and last year, the resulting crisis drove the banking system to the brink of collapse. 
• Without government assistance, it seems likely that most of the top-tire banks would have collapsed. 
• The repeal of Glass-Stegall (which separated investment banking from commercial banking) was repealed in 1999, which is one reason why banks were able to trade asset-backed securities (ABS) and blow up the system nine years later. 
• During the New Deal, after confidence was restored in the banking system, "Roosevelt focused on employment through numerous public works projects and agricultural programs. 
• Warren Buffet, who thought the bank bailout "absolutely necessary," says that "if stocks continue to trade at bargain prices,  he'll put his entire personal fortune into equities."

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