It the Feds did not do this stuff in 2008, 90% of the banking
system would collapse, home loans would be unavailable at all,
there would be widespread panic, banking holidays, bankruptcies,
and unemployment even much, much higher than it is now. You can
say the Feds should have allowed the blowup, since it would
cleanse the clogged credit system.
No, Bear would not fail alone, there would be a derivative
detonation and the domino effect that would topple the system,
shutting it down completely around the globe. That was the only
reason Bear/AIG/FNM/FRE were bailed out.
So, Ben was not lying, neither was Time. -g-
The question is, now what? This will be a recurrent
problem until a Red Adair style solution |
