At this moment, it seems like the most important question is: How can we tell whether the financial markets are merely in an irrational panic from which they can be bailed out; or have we arrived at a rational reckoning where bailouts are just money down the rathole?
Have economists developed some sure fire models for distinguishing between panics and reckonings? I realize that economists have been busy lately studying sumo wrestling, but perhaps a few of them have stuck to their knitting?
Or, are we just flying blind?
And if we promise to bail out irrational behavior, doesn't that just buy more irrationality?