The day the financial world almost ended
“Yes, we bailed out the economy,” said Fed Chairman Ben Bernanke in Senate testimony on Thursday, referring to the Fed’s role in responding to the Bear Sterns collapse. But since when is it the Fed’s job to authorize spending taxpayer money, which violates the long-standing separation between Fed and Treasury duties?
I hve to agree here. The Fed did not bail out the US economy though..it has set things up to be much worse. Bear could have failed and that would have been absorbed..however now with the Fed holding billions in bad mortgages on it’s own things are going to get worse before they get any better.