I was hard pressed to call it a debacle, but I couldn’t think of a better word. Still, when I think about it I keep hearing Resolution Trust Corporation bells in my ears. Steve Berger says:

Let contractual arrangements remain in force, let good lenders prosper and bad ones suffer (similarly with borrowers) and let the taxpayers’ pockets go unpicked. Legislative interference with market processes is likely only to prolong and deepen the downturn.

I concur, but legislators only know how to legislate. Look at the bright side…if government steps in, institutions will have less need to raise rates.