I was thinking about Fed’s $85 Billion Loan Rescues Insurer AIG tonight and realized just how close we’re getting to a total financial collapse in this country.

It’s not true the fundamentals of our economic system are stable and secure, they’re clearly not.   If it wasn’t for the intervention of the Federal Reserve and Treasury Department – had they done what they wished to do (and let bank after back fail) the entire financial system would have collapsed by now.

That’s pretty scary.

In an article today, Perhaps, Time for Someone to Play Offense, DAVID LEONHARDT reminds us that maybe we’d be better off letting all the banks we tried bailing out to fail.

But …. I don’t know if that’s true.