buffalogordon

Let's Get Real About Bear Stearns

I agree with the author. Bear was NOT bailed out - they were swiftly liquidated and backstopped by the Fed to keep global credit flowing. Bear was widely known to be a loner on the street - they had no friends. Therefore, instead of the other investment banks helping Bear stay afloat through the turmoil, they were swiftly taken down on a rumour. No trust. Extraordinary times call for extraordinary measures. As much heat as Bernanke takes, I think his scholarship with regard to understanding the machinations of the Great Depression helped here.