[Marxism] The Bear Stearns bailout

[Dbachmozart@xxxxxxx]

clip - 
The Bear Stearns bailout has ignited a firestorm  of controversy about moral 
hazard and whether the Fed should be in the business  of spreading its largess 
to profligate investment banks. But the Fed had no  choice. This isn't about 
one bank caving in from its bad bets. The entire  financial system is 
teetering and a failure at Bear would have taken a wrecking  ball to the 
equities 
market and sent stocks around the world into a violent  death-spiral. The New 
York 
Times summed it up like this in Saturday's  edition: 
"If the Fed hadn't acted this morning and Bear did  default on its 
obligations, then that could have triggered a widespread  panic and potentially 
a 
collapse of the financial system". 
full -  _http://counterpunch.org/whitney03152008.html_ 
(http://counterpunch.org/whitney03152008.html) 



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