Greg Mankiw always offers very interesting commentary at his blog.

In this post he quotes economist Allan Meltzer on the proposed bail out by saying:

…if they’re going to do something, then what they ought to do is make loans, which the financial institutions have to repay with interest. And if you think — that’s an idea which the Chileans have used in a bigger crisis than this for them in 1982, and it worked for them. People paid back the loans. They weren’t allowed to pay dividends until they repaid the loans. They weren’t allowed to take bonuses until they repaid the loans. I think that’s the way — if we’re going to do this, then that’s the way we should do it.

We are surely beginning to feel the effects of the sneezing from the US already.

What do you think?