Next time people complain about handouts, don’t forget this one.
It’s not clear that there will be any “handouts” here. And any guarantees that end up having to be paid by the taxpayers (and there might not be any, if all goes as hoped) would not be likely to exceed what the taxpayers would end up paying through other avenues, if the huge financial market disruption that would be caused by the unrescued failure of Bear, actually occurred. When dozens of smaller banks start going under as part of the ripple effect, millions of FDIC-insured account-holders will get their $100,000 from the taxpayer.
This is a marked indication of looming financial disaster.The Fed bailing out one financial company means they just printed money it and they will print it for their buddies again and again. Stern collapsed tonigkt and went for pennies to Chace bank and the FED dropped the discount rate TONIGHT!!! SUNDAY NIGHT!! The sockmarket will lock down tommorrow and the safety shut down will hit at a 20% decline. This is total disaster.