Megan peers into her looking glass:

Would the cost of letting the bank fail exceed the cost of bailing them out?  Impossible to say.  But the cost of implying you won't let the bank fail is definitely smaller than either actually bailing it out, or letting it go to the devil.  Geithner et al. are hoping that the implication will be enough to make the actual act unnecessary. 

We want to hear what you think about this article. Submit a letter to the editor or write to