Industry NewsMarkets & Economy

‘No taxpayer bailout!’ rhetoric wears thin

Commentary: Who else can foot the bill in financial disasters?
Published on Jun 18, 2010

New data tilts toward slowdown. The Philadelphia Fed index surprised on the downside, at half its forecast; new unemployment claims rose (this might be BP's gift to the Gulf); single-family housing starts and permits fell off cliffs, at 17.2 percent and 5.9 percent, respectively; and core CPI rose only 0.1 percent. Manufacturing has been the only strength, with industrial production gradually crawling out of a hole but still 7.9 percent below 2007. Long-term rates are holding lows nicely, with the 10-year T-note near 3.2 percent and lowest-fee mortgages just under 5 percent. Europe continues to stumble on the way to wherever it is going, all sovereign bond spreads there widening vs. German bonds. A quiet run. A plague has descended onto our land, and its name is: "No taxpayer bailout!" This illness is related to a few other fatal rashes and fevers of modern democracy, but nothing beats the "No taxpayer bailout!" battle cry for decadence. When some huge...

Comments