Daily Reading: December 12, 2008

The 5 people who voted in the MOS poll will not like this article. The (not so) Big 3 might get TARP money. AP.

An under-reported story is the number of regional commercial banks that have been shut down by regulators. This article reports the number has recently grown to 25. AP.

Securities fraud is a big deal, just ask Bernard Madoff. How in the hell is it possible to run a $50 billion Ponzi Scheme? Bloomberg.

More auto bailout news from Bloomberg. I am really struggling with how I feel about the government bailing out decades of poor management and an inefficient industry. In normal times (when most Americans are fat and happy) I would say, "Let a bankruptcy judge sort it out. The Japanese make better cars anyway." But these are most certainly not normal times. My concern is that if GM and Chrysler aren't given some aid they will be forced to liquidate. The subsequent job loss could be devastating to an already weak economy. So I think short-term aid is appropriate if withholding said aid would have far reaching consequences (read: materially negative for the country as a whole). Believe me, I have no sympathy for Detroit or its entitlement minded citizens. My concern is strictly for America.