Bernanke Defends Bear Stearns Rescue

The Federal Reserve moved to assist a Wall Street investment bank on the brink of bankruptcy to prevent a failure that could have dealt serious consequences to the U.S. economy, Federal Reserve Chairman Ben Bernanke said Thursday. (April 3)

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News & Politics

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• bernanke
• congress
• defends
• bear
• stearns
• rescue

[redviper101]

Corporate welfare. When the poor go on welfare it is called socialism and a liberal idea. When the rich go on welfare its business as usual. Anyone one see a problem here?

[stew4lunch]

Borrow a million and the bank owns you. Borrow a billion and you own the bank.

This old saw is the essence of Benranke's testimony. America will never prosper again. The Fed has established a precedent for every over-eager, incompetent financial manager to whine, "You bailed out Bear Sterns, you have to bail me out too."

Who's paying for this buyout? Join us. Fill out your 1040 with red ink.

[perlaand]

... he works for the banks... the big banks...

[real998877]

Ben Bernanke knew an extensive economic mess would result if Bear Stearns was allowed to fail. In particular its failure would have been "felt broadly in the real economy through its effects on asset values and credit availability." He is a world-reknowned professor at Princeton and obviously a smart man. Why, then, was Lehman Brothers allowed to fail? --Very inconsistent government policy.

[jackstevison]

FAIL

[cincye]

Federal Reserve "System" owns the world....and they are going to make it worth nothing.

[rotinek]

Listen to what Bernanke is saying very closely... and then consider what is about to unfold with Fannie Mae & Freddie Mac. He acknowledges that the reason for the ILLEGAL bailout of Bear Stearns is risk of systemic credit crisis. FANNIE & FREDDIE ARE TOO BIG TO BAIL. DO THE MATH! The Credit markets are about to go into convulsions. Debt is about to get very expensive very soon...

dubdubdub(dot)RGEMONITOR(dot)c­om

[KARStarla]

I dont know, I read somewhere they would actually be throwing their silver and gold in the streets ;P

[DanNabbith]

Rockstar97321 is just scratching at the surface of the international banking cartels. The International banks back the World bank and many govenments around the world. They have the money to back these large loans and collect their debt by several means; regulate interest in their favor, control other banks to thwart competition, give and get favors to gain political stability.

[markayler]

I can't seem to find the full version of this. I watched it on CSPAN but didn't record it. It was amazing...some of the stuff they said would make you sell everything you had to buy silver coins or gold. Prepare people!

[ikekll]

Employees said there was no meeting to inform employees about what was happening...While no layoffs have been announced, analysts expect that they could be significant..."

(With JPMorgan deal to rescue Bear Stearns, market wonders what's next-THE ASSOCIATED PRESS)

[ikekll]

"One reaction is shock that a company that reaffirmed its book value at around $84 on Wednesday can be worth $2 per share four days later on Sunday," said Deutsche Bank analyst Mike Mayo.

At Bear Stearns' 47-story headquarters in midtown Manhattan, many employees said they still couldn't believe that the nation's fifth-largest investment bank is — essentially — out of business...