[nicmarlo]

The money quote:

"...and acknowledge that if any losses arise out of the special facility extended by the FRBNY to JPMCB, the loss will be treated by the FRBNY as an expense that may reduce the net earnings transfered by the FRBNY to the Treasury general fund."

Translation: the tax payers will get stuck with the bill.

Then why do the "resident experts" continue to claim that taxpayers will NOT be who ends up bailing out Bear Stearns? BTW, what is the incentive for the Fed to insure that the taxpayers AREN'T stuck with the bill? Wouldn't it be to the Fed's and JPM's advantage to ensure that they get the most money out of this "transaction"? (wouldn't that more likely happen if a loss was ensured...so that the Treasury ala taxpayers would end up FUNDING this bail out?...or, is that just too cynical and unkind of me to think about the Fed and the corporate greedholders? : )

[null and void]

Then why do the "resident experts" continue to claim that taxpayers will NOT be who ends up bailing out Bear Stearns?

Dunno. Let's ask one...

[LS]

Well, the taxpayers may get stuck with something . . . and it is infinitesimally smaller than what we would have gotten stuck with if the BS collapse had resulted in a nation-wide banking panic.

Drudge had a story today that suggested we were VERY CLOSE to that, and that the recovery of not only our own markets but markets worldwide are largely due to the Fed's action.

[RSmithOpt]

I cannot f'n believe that the fed's and the politicians think that we are so stupid that 'the taxpayer isn't stuck with this bailout'? It's either in the form of higher taxes and/or the continued devaluation of the dollar and inflation.

Give me a break please.....

I cannot believe that there aren't more people on the tube criticizing the economic Ponzi scheme that has developed from the notional economy. It's nothing but a shell game for the wealthy and the government to skim all the potential profits of investments of the average Joe.

To me, it smacks of borrowing future other peoples' monies for investment insurance that may or may not occur from business transactions . How is that possible in the real world?