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Resident Fellow
Alex J. Pollock |
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Sir, One day Bear Stearns was "denying that Bear faces a liquidity crisis or has lost the faith of traders" ("Bear Stearns' exposure to ailing funds worries shareholders", March 14)--and the next day it needed a bail-out.
As Walter Bagehot explained so perfectly in 1873: “Every banker knows that if he has to prove he is worthy of credit . . . in fact his credit is gone.”
Alex J. Pollock is a resident fellow at AEI.
In this issue of Tax Policy Outlook, Robert Carroll, 