Economists worry that declining housing prices coupled with defaults on sub-prime loans could have ripple effects that will harm the economy and even precipitate a recession. Some politicians in Washington are calling for a bail-out of borrowers who may lose their homes. Others decry using tax money to help people who made bad financial decisions, arguing that it will encourage them to make more bad choices. Larry discusses the political ramifications of both viewpoints with Bob Hagerty of The Wall Street Journal and Thomas Davidoff of UC Berkeley.