Dean Baker, author of The Conservative Nanny State: How the Wealthy Use the Government to Stay Rich and Get Richer and co-director of the Center for Economic and Policy Research, says:
No Bailout: Stop Rewarding Incompetence
There is no doubt that the world financial system faces unprecedented strains as a result of the incompetence of our business and economic elites. The collapse of the system of finance that we started to see last week would be a genuine disaster. ...
However, we did get through the crisis last week with quick actions by the Fed and Treasury. There is no reason to believe that with comparable steps in the future, coupled with the raising the $100,000 limit on deposit insurance, as suggested by Jamie Galbraith, that we cannot keep the financial system operating.
Keeping the financial system alive, but in the intensive care unit, is not desirable. However, given the integrity and the competence of the individuals involved, it may be the best option.
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