Matt Welch, noted libertarian and editor of Reason Magazine, doesn't think there should be a government intervention, but he doesn't simply discount the idea or underestimate the current situation. Citing the possiblilty that the money markets were going to go down as of last week, Hugh Hewitt asked Matt Welch in an on air interview Tuesday evening:
HH: Are you unsympathetic to the argument that economic collapse* is generally simply an emotional issue, and that we've just got to stop the bleeding at this point? Does that not impress you at all?
MW: No, uh, I mean I'm sympathetic to a lot of arguments, I mean, there are some actual, believe it or not, dyed in the wool libertarians who work for the SEC who, of my knowledge, and I've argued with them about, you know, long ago and far away - the bailout of Bear Stearns, just a couple months back, and their argument is that, hey look, there really is a level of too big to fail, and it's just going to -- when people don't know what paper the other investment bank is holding and all the banks refuse to lend to one another then it creates sort of a credit spiral and we'll all be involved and people who are innocent will be involved. I'm very sympathetic to the argument. It's a moving and persuasive argument, at some degree.
*as House Banking Committee member John Campbell (R-CA) reported yesterday on Hewitt's show, "The federal home loan bank notes went for sale yesterday, and did not sell. None of them sold for the first time since the Depression. I mean, that has never happened before. And that has the full faith and credit of the United Sates government! But there is such fear out there [among the institutions] that somehow they'll wiggle out of this and they won't pay me back, that there's irrational decision making going on..."