Results 1 to 4 of 4

Thread: Did bailing out Bear Stearns make this worse?

  1. #1

    Default Did bailing out Bear Stearns make this worse?

    i was looking at a letter i wrote in March that was posted online by a Seattle paper:
    ...

    Giving this unelected secretive group of officials more power to affect asset prices will not help markets. The bailout of Bear Stearns is a prime example of how the Fed encourages unwise and risky behavior in the credit markets. If the market participants knew that they alone would be responsible for their own actions -- market participants would modify their behavior and accurately reflect risk in pricing of assets.

    If the Fed is given more power to manipulate markets, risky endeavors will continue to be taken by the markets. The answer to financial market stability is less "ambitious" plans for the Fed, and more accountability by the markets.
    i'm sure i plagiarized this from the forums, but i'm wondering would this credit market meltdown have been less severe had the Fed let Bear fail?



  2. Remove this section of ads by registering.
  3. #2
    Posting privileges under review


    Posts
    73
    Join Date
    Sep 2008

    Wink

    Analysts say that with regards to the AIG bail out of $85 billion, it could have been only a $20 billion bail out if they bailed them out before the weekend on Friday. So I would be compelled to think that the longer the delay of these bail outs the larger the sums will be.

  4. #3

    Default

    Quote Originally Posted by FreeMarketEconomy View Post
    Analysts say that with regards to the AIG bail out of $85 billion, it could have been only a $20 billion bail out if they bailed them out before the weekend on Friday. So I would be compelled to think that the longer the delay of these bail outs the larger the sums will be.
    Given the track records of the Powers That Be...some of whom I contend belong in prison...it is more likely that the delay was deliberate, to mitigate someone's losses and or maximize someone's gains.

  5. #4

    Default

    Quote Originally Posted by cheapseats View Post
    Given the track records of the Powers That Be...some of whom I contend belong in prison...it is more likely that the delay was deliberate, to mitigate someone's losses and or maximize someone's gains.
    Nawwwwwww! Ya think?
    If God himself got off his throne, descended from the heavens, trumpetted at my door, and announced that I was wasting my time trying to get Ron Paul into the Whitehouse, I would thank him for his concern and ask him to leave me to my business. I've wasted lots of time on far less noble causes. ~RockEnds






Similar Threads

  1. Bear Stearns
    By cbc58 in forum Economy & Markets
    Replies: 3
    Last Post: 04-04-2008, 06:56 AM
  2. The Bear Stearns mess
    By Kraig in forum Economy & Markets
    Replies: 2
    Last Post: 03-27-2008, 05:26 PM
  3. The Bear Stearns mess
    By Kraig in forum Individual Rights Violations: Case Studies
    Replies: 2
    Last Post: 03-27-2008, 05:26 PM
  4. Why is Bear Stearns Trading at $6 Instead of $2?
    By roguepatriot in forum Economy & Markets
    Replies: 5
    Last Post: 03-24-2008, 12:22 PM
  5. Bear Stearns just got bailed out???
    By Cowlesy in forum Economy & Markets
    Replies: 27
    Last Post: 03-15-2008, 11:04 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •