Items of Interest:
Jim Rogers on the Bear Stearns Bailout -- On why Bear Stearns was bailed out:
You know the reason they did it this way was because, if Bear Stearns had to declare bankruptcy, you'd realize that Bear Stearns paid out billions of dollars in bonuses in January - six weeks ago. If he let them go into bankruptcy, they all would have had to send back their bonuses.On Alan Greenspan's role in this mess:
This is what they're doing, they're doing it so they don't have to give back their bonuses. That's why they didn't put them into bankruptcy. Jamie Dimon has gotten a great deal because the Federal Reserve is paying for it. The Federal Reserve is using taxpayer money to buy a bunch of Bear Stearns traders' Maseratis. [...]
In 1966, the entire Japanese financial community went bankrupt. Every broker in Japan was in bankruptcy. Japan came out of that and became one of the great powerhouses of the world.
In 1907, everbody on Wall Street was bankrupt. Everybody was bankrupt in 1907. America recovered from that and had a very nice future. Are you telling me that we're never going to have bankruptcies in the financial community again?
The first two central banks in America failed. Between Greenspan and Bernanke - I've written this, it's in my book, long before this happened - they're setting up the failure of the central bank. The demise of the Federal Reserve.
The first two failed, this one is going to fail too - because of Greenspan and Bernanke. Greenspan laid the perfect foundation for Bernanke.
The Affluent, Too, Couldn’t Resist Adjustable Rates -- They took out adjustable-rate mortgages at the peak of the housing bubble to buy homes they would otherwise not be able to afford. Or they refinanced existing mortgages to take cash out. And now, two or three years later, the day of reckoning is here.
These are not lower- and middle-income borrowers, but more affluent consumers with annual incomes of $100,000 or more who are increasingly being ensnared in the home mortgage crisis. [...]
- Was Bear Buyout Really a Bailout? - Lawrence Hunter, American Spectator
- At Bear Stearns, Meet the New Boss - L. Thomas & E. Dash, NY Times
- Bear Economists Snipe at Bernanke - DealBook, NY Times
- Bear Trapped: Alternative Looks Unlikely - M. DeCambre, TheStreet.com
- Bring on the New New Deal - Harold Meyerson, Washington Post
- New Deal 2.0: Big Government Is Back - J. Pethokoukis, Capital Commerce
- Bernanke Wrote the Book on Inflation, Depression - C. Baum, Bloomberg
- Here's How to End the Panic - Steve Forbes, Forbes
- The Financial System: Where Did It Go Wrong? - The Economist
- Truth Trades at a Premium as Crisis Speeds Up - MarketWatc
- Private Profits, Public Risks - Peter Wallison, Wall Street Journal
- Jeremy Siegel on Bear, Inflation and Int. Rates - Knowledge@Wharton
- Aussie comedy duo explain subprime meltdown - Boing Boing