Schiff was wrong about letting everything fail, however.
<a class="postlink" href="http://www.youtube.com/watch?v=M9rECsp5768&feature=related">http://www.youtube.com/watch?v=M9rECsp5 ... re=related</a>
The practice of letting some companies fail, and propping up other key companies has proven right so far IMO. If AIG, Citibank and General Motors had all failed at the same time I don't think the world economy would have been better off.
The question now is long term, do companies have a healthy enough fear of failure to motivate them to avoid risk?
At any rate, other countries would have been laughing as they propped up their own institutionalized financial companies regardless.