MIT Economist Worries About Bailout

MIT economist Jiang Wang worries about the government's bailout of bad investments, pointing to the success of past private bailouts and suggesting this matter could have been resolved privately as well. Jiang also wonders if the bailout will falsely improve stock prices, hurting investors' ability to make money off the market's downturn. His final concern is about the distorted effects that the bailout may have on the housing market, distorting home prices even as it reduces foreclosures. What's a consumer to do? There's always the mattress.