Capitalism 101

By Greg Scoblete
November 22, 2010

'But even as Europe moved to avert this latest debt crisis, economists and policy experts are increasingly debating whether it would be better, and fairer, for the Continentâ??s weakest economies to default on payments to lenders.

Many experts now say that bailouts only delay the inevitable. Instead of further wounding their economies with drastic budget slashing, the specialists assert, governments should immediately start talks with bondholders and force them to accept a loss on their investments. - New York Times

'

Aren't bondholders supposed to take losses on bad investments?

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