So: that's where we are. As to what can be done, it may not matter. That is, it's important what we do, but the chance that it will be done sanely and rationally is very small. What will be done must be decided by the most unpopular Administration in nearly a century in connection with the most unpopular Congress in history; and everyone involved in finding a remedy was in one way or another a part of creating the mess. By everyone, I mean everyone: the Administration, the Treasury, the Congress under Carter and Clinton, Congress under Reagan and Bush, Congress controlled by both Democrats and Republicans, the regulatory agencies, and the "experts" now out of jobs who will be hired to manage the new institutions that will be set up to buy bad debts: every one of them. What will be done will be settled by politics, not by economics.That Jerry Pournelle, he sure is a smart guy for a rocket scientist. You should go read the whole article.
(H/T to The Smallest Minority.)