(Guest post by Greg Forster)
As the evidence piles up, I’m moving closer to abandoning my studied neutrality on the bailout and joining Jay and Matt in opposing it. I still lack the expertise to evaluate the claims that there’s a credit panic, that markets behave irrationally during a panic, that panics turn into crashes, and that it is possible for government to prevent the crash by acting as a sort of substitute rational investor during a panic. But whether or not government intervention can counteract a panic, it’s looking more and more like that isn’t what’s happening.
Today’s datum? GM is buying Chrysler partly so that it will be considered “too big to fail.” (HT Jonah Goldberg)
Since I first saw this in The Corner, I’ve been meaning to post it, but haven’t gotten around to it. Glad I waited – now I can also direct you to America’s MVC (most valuable columnist), Holman Jenkins, whose Wall Street Journal column this morning discusses the case.
Jay P. Greene's Blog 
Credit was never frozen. http://www.minneapolisfed.org/research/WP/WP666.pdf
That was a myth created by Wall Street to get the money, politicians to centralize control, and the media so they could happily claim capitalism has failed.