Here’s a letter that I sent last week to the New York Times:
Ms. Katz argues that credit-card companies that received bailout funds should be prevented from raising their rates. While I have no sympathy for any firm that accepted taxpayer funds, the fact is that a firm must be able to change its prices in response to changing market conditions if it is to survive in the market.
By turning private firms into quasi-political entities, bailouts undermine their own ostensible purpose of making these firms strong and nimble competitors.
Donald J. Boudreaux