The Economy

For sure. I think Sharma had the S&L bailouts in mind as a sort of starting point for when we stepped off the rails, but you can take it to the Chrysler loan guarantees that Carter signed into law right before leaving office. What Congress did with Chrysler was a step in the wrong direction, but it actually ended up costing everyone else nothing because luckily for Iococca it bought him some needed time (not that that justifies it having happened in the first place. ... you and I wouldn't have gotten a $1.5 billion loan putting all of our neighbors on the hook if we defaulted; that's just not right).

They got knee deep into the S&L defaults a few years later, and it ended up costing Americans $160 billion, which is a pretty quaint number relative to the later costs because of the precedent it set. But up until then, that sort of thing would have been heretical. I think the point is that once you open barn doors like that just a little, you may as well just be opening it all the way. What Ruchir points out in his book is that the bailout culture became entrenched during that period, and the interventions got bigger and bigger after that and now occur at even the smallest sign of any trouble. One analogy he uses is a doctor prescribing opiates for even the slightest pain. ... and creating drug addicts in the process.

Anyhow, it's a book worth reading for anyone interested. Ruchir is a smart guy.

 

Roscoe's House of Chicken 'N Waffles closing Pasadena location after 30 years

McDonald's at SF's Stonestown Galleria closing Sunday after more than 30 years, owner says

Terra American Bistro closing eastern San Diego restaurant, transitioning to take-out

 

Look, I get it. But this is a California problem. A big one.McDonald's isn't the only one. Or Roscoe's. And the bulk of the McDonald's CEO pay is via stock. Not saying it's right, but that's what it is.