When the Eurocrats Ask,"How Do You Think the People of Manhattan Would Like Bailing out Texas?" Note That We Did 30 Years Ago

As Paul Krugman pithily observes that, "Bailing out Texas," is a pretty good description of the Savings and Loan crisis of the 1980s:

Ahem. As it happens, the people of Manhattan did bail out Texas, big time. I wrote about it here. The savings and loan crisis, which was very costly to taxpayers, was mainly a Texas affair:

The cleanup from that crisis cost taxpayers about $125 billion (pdf), back when that was real money. As best I can tell, around 60 percent of the losses were in Texas (pdf). So that’s around $75 billion in aid — not loans, outright transfer.

So yeah, we did that.