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1. Comment by Carl Clegg on 11 December 2008:

   Summary: The market can allocate resources and capital much more efficiently than the government can. The bailout will prolong the agony, tie up valuable resources and make the pain…well, more painful. Chapter 11 and the natural process of restructuring or selling off assets is clearly a better route than manipulation by the state.

2. Comment by Lisa O on 11 December 2008:

   In this busy environment where competition is tight, more people are looking for financial assistance to alleviate their needs. Every year in the United States, about 10 million households declare bankruptcy. A lot of people try to blame the payday loan industry, and cite that there are more payday loan stores than McDonalds or Starbucks. A lot of negative media coverage has been inflicted on the payday loan industry, especially since the industry has become so popular and prevalent. A good deal of media coverage likes to link the two things, claiming that getting payday loans causes bankruptcy. This isn’t really good thinking, since it is relatively common knowledge that just because two things coincide, doesn’t mean that they are linked. The Vanderbilt Law School’s Assistant Professor Paige Marta Skiba found that applicants that were approved for payday loans were more likely to file for bankruptcy than those who didn’t. Now, that isn’t surprising – the people who applied for payday loans needed money! People who don’t need money, don’t apply. In other words, people who need money are more likely to declare bankruptcy. Anybody could have told us this. A payday loan is like any other debt – you take out the loan and you have to pay it back responsibly, and those people who borrow and spend irresponsibly are the ones who are the most likely to wind up with bankruptcy. It is unfair, and not really logical to blame payday loans for the rate of bankruptcy – instead of irresponsible financial planning. Click here to learn more on Payday Loans.

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