FDR

So, I'm working on game theory. I've been trying to figure out the game people keep playing with the "I pay my bills, Nobody bails me out... Why should I bail out the ...(insert bailout candidate). "

I've "felt" that the inevitability that the people who show the "Moral High ground" and want to give out the "Tough Love", would override the self preservation impulse, and that that would provide the needed systemic risk.

I'm not saying that we should bail out the big three, I'm still on the fence about it.

But I'm checking out this FDR documentary, and I realize the same game is the one we played in WWI and WWII with Isolationism. As people Waited Until the fire was actually burning the couch they were sitting on, before taking action. Which was also the game that Congress played when they needed the political cover of a thousand point drop in the market to allocate the 700 billion.