N.Y. Times defends bailouts

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Good morning, Steve Lopez. Nice wedge work. Random stuff from here and (mostly) there: The New York Times, no surprise, is rising to the defense of housing bailouts: ‘A bailout is justified when remedial assistance averts even greater harm to the economy.’ This editorial, worth reading, argues the Bush plan IS a bailout, what the Fed has been doing IS a bailout, and that ‘policymakers from Bush on down must acknowledge the bailouts for what they are — government interventions in private markets to correct something that has gone very wrong.’

OC Register blogger Jon Lansner reports early August numbers from DataQuick show Orange County home sales falling by 34% from year-earlier levels. Prices held steady in the data, which covers sales through Aug. 22.

Also in OC Register blogville, Pimco’s Paul McCulley sees major interest rate cuts coming -- 2 full percentage points: He ‘believes the Fed will begin lowering the Fed funds rate at its next meeting Sept. 18, eventually cutting it in stages by 2 percentage points from the current 5.25% to 3.25%.’

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