A Comprehensive Policy Review of the Bailout

Ricardo Caballero, an economics professor at MIT who specializes in macroeconomic and financial issues, has written a long and detailed policy review of bailouts and flight-to-quality episodes, which is what the US is currently experiencing with the credit crisis. If you have time, you should read as much of it as you can. I will try to summarize some key points in the near future (at least I plan to do that). Read his paper here.