Let’s go back to Bear-Stearns and forward to Friday. At each juncture we were told if we do this one- it will save us from major economic collapse. Clearly- they are either mis-reading the big picture or outright lying.
*******************
I suggest another explanation - contagion. The effectiveness of each step depends on the ability to stop the panic. That is why this needed to be “The Mother of all bailouts.”
Even though this article was from the NYTs, I did find it a useful analysis of what happened up to the bailout on Friday.
Thanks for posting that- it makes sense given the ever changeable element in the equation- human nature.