mwalsh17

Backroom Bear Stearns Deal Exposed

Bear Stearns went under Net Capital on Friday the 14th, they could not open for business on Monday. Asia lets us know that if this isn't rectified by 8:00 pm on Sunday when the Japanese market opens that they will dump wholesale every US security they own. Then when Europe opens later the next morning they will follow suit. That folks is the "crises of confidence" you are hearing about. Our markets would have closed (and would still be closed) banks and brokerage firms would have failed and the dollar would have dropped through the floor, full on depression. The Feds are hero's, they recognized the situation, they formulated a plan immediately and they took action quickly with JPM, the only bank with a clean enough balance sheet to handle it. This was a bailout OK, a bailout of our financial system.