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Politics : Politics for Pros- moderated

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From: LindyBill4/28/2008 8:53:57 PM
   of 793888
 
Fed's Bailout Is Questioned By Ex-Staffer
By Greg Ip
Word Count: 370 | Companies Featured in This Article: Bear Stearns, J.P. Morgan Chase

WASHINGTON -- The Federal Reserve's rescue of Bear Stearns Cos. will come to be seen as its "worst policy mistake in a generation," a former top Fed staffer said.

The episode will be seen as comparable to "the great contraction" of the 1930s and "the great inflation" of the 1970s, Vincent Reinhart said Monday at a panel organized by the American Enterprise Institute, a conservative-leaning think tank where he is now a scholar. Until mid-2007, ...

online.wsj.com
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