Bernanke says Fed did not 'bail out' Bear Stearns

[Maverickz]

Quote from piranahfishy:

If you don't think the FUD bailed out BSC you I bet the ranch are not only a losing trader (you are huh!) and an idiot. George Soros just said on cnbc interview w/ maria Cuntromo that FUD bailed out BSC. But he is only a billionare who made his fortune in the markets so I suppose he doesn;t know.

Actually the Fed didn't technically bail out BSC. JPMorgan bought BSC and the Fed facilitated the deal by giving JPMorgan 29bil in exchange for 30bil in assets JPMorgan got from buying BSC.

Had BSC been "bailed out" they would not now be a subsidiary of JPMorgan.

 

[WaveStrider]

Quote from Jayford:

The FED was indirectly culpable by providing fuel for the bubble, but that didn't mean BSC had to leverage themselves to such a ridiculous degree with one type of derivative. The blame mostly goes to Bear.

The Fed was directly responsible for the mal-investment bubbles that emerged from it's policies.

If you don't want bubbles to keep popping, don't blame the guy with the pin - because you can be sure there will ALWAYS be guys waiting with pins - blame the guy who keeps making the bubbles

 

[Jayford]

You misunderstood. I meant indirectly culpable for BSC probs. The FED created the bubble, but it was lack of regulation and complete idiocy in risk management that killed BSC. It was their own fault.