March 14, 2008 General 0

JPMorgan Chase, Fed to aid Bear Stearns – U.S. business-
Last week, the Fed announced an industry-wide rescue package that would provide as much as $200 billion in loans to banks and investment houses and allow them to put up risky home-loan packages as collateral. It was the Fed’s latest effort to stem a global credit crisis that began last August with rising loan defaults for subprime mortgages, loans provided to borrowers with weak credit histories.

Just read the bolded sentence above.  This is why the whole thing is going to implode.