The first bank nearly fails

The mortgage fallout continues. Bear Stearns has had an intervention from the New York Fed and JPMorgan Chase to keep an exacerbated liquidity problem from swallowing the financial institution.

The safeguards put into place after the Great Depression are working. The savings and loan crisis of of the 80’s and 90’s saw this safety net, too. Sadly, we don’t seem to be learning from these cycles of overspending and deep crisis.

Comments

  1. “an exacerbated liquidity problem ”

    Tell me that doesn’t sound like a spam email header.

  2. When crooks win, we lose. When crooks lose, we really really lose.