The economy is in such a mess that by now it seems absurd to blame the whole thing on the government’s decision not to bail out Lehman brothers. If anything, it was probably a good thing, as John Carney argued this morning. It was one of the few moves that actually conformed to the policy suggestions of Anna Schwartz. Today, during his post-market interview with Maria Bartiromo, Hank Paulson again reiterared his rationale for letting Lehman fail:
A joke we heard: It’s a good thing Hank Paulson’s interview was after the market closed, given the way it’s usually reacted anytime he talks.
Letting Lehman Go: Not A Disaster