In Defense of the Fed’s Bailout

(This piece originally ran on my Patreon page.) I see that my friend, David Dayen, is highly critical of the Federal Reserve Board’s bailout of corporate America. I’m afraid that I will have to disagree with him on this one.

Before going into details, let me briefly give my bailout credentials. I was one of the few progressive economists who was opposed to the 2008-2009 bailouts. I argued at the time that it would have been better to let the market work its magic on Goldman Sachs, Citigroup, Ban...