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The bail out will take place simply to avoid that depression. But depressions have some salutary effects - the scoundrels go belly up, the weakest get purged. And, in the wake of the disaster, people demand strict regulation of the money lenders to keep their greed in check, and government spends money on the real economy to put people back to work.
Geraghty wonders if the idea that the Democrats are actually engineering this to usher in a new era of socialism is really that far-fetched.