What is it with market worshipping pundits?  Sebastian Mallaby in 2007:

Rather than seeing hedge funds as sources of dangerous financial fires, in fact, it is more accurate to see them as the financial system’s benevolent fire fighters — and to let them have the tools they need to do their jobs well.

Hedge funds as "benevolent fire fighters?"  Yay!  The totally super awesome unregulated hedge funds saved the economic day! 

Hmmmm…not so much.  But never fear!  Sebastian, again, worships at the Keynesian altar today:

The bailout is often seen as a commando operation, in which you take out the bad-loan enemy and imprison him in a government vault. But it is also a hearts-and-minds operation, in which you persuade wary financiers whose territory you have invaded to trust you and work with you.

The key question is whether Treasury purchases of bad loans will encourage hedge funds and other investors to dive in themselves.

Holy head up yer ass…Stop trying to boost your book sales and be honest with yourself and your readers, for hell’s sakes.

Here’s a reality check: jobless claims are up, groceries cost more, health care expenditures are insane, senior citizens are panicked about their retirement savings and increasing costs of everything with their diminishing fixed income pool, food banks are swamped, and we’re about to enter heating bill and heating oil tank fill-up hell. 

UPDATE:  Oh, frabtacular joy.  eCAHN says George Bush will address us at 9:35 ET. 

(Video from The Daily Show to make up for inflicting Mallaby on you this early. H/T CalculatedRisk.)

Christy Hardin Smith

Christy Hardin Smith

Christy is a "recovering" attorney, who earned her undergraduate degree at Smith College, in American Studies and Government, concentrating in American Foreign Policy. She then went on to graduate studies at the University of Pennsylvania in the field of political science and international relations/security studies, before attending law school at the College of Law at West Virginia University, where she was Associate Editor of the Law Review. Christy was a partner in her own firm for several years, where she practiced in a number of areas including criminal defense, child abuse and neglect representation, domestic law, civil litigation, and she was an attorney for a small municipality, before switching hats to become a state prosecutor. Christy has extensive trial experience, and has worked for years both in and out of the court system to improve the lives of at risk children.

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