I agree with Gretchen Morgenson, writing for the New York Times. The Fed shouldn’t bail out Bear Stearns. The fed crossed a line by keeping afloat a major architect of the housing debacle.

I wrote my first blog post about the housing bubble in August 2005, a year after deciding not to buy a home in the Washington, DC suburb of Bowie. It was already clear to me in summer 2004 that something akin to a repeat of the dot-com bubble was taking place in the housing market.

Had we bought in 2004, we would likely hold a mortgage that exceeds the house’s reduced value. We could never have moved to San Diego.