The Fed has bailed out Bear Stearns because of fear that a systemic meltdown could occur in America’s financial markets otherwise.

The Fed bailout of Bear Stearns is an effort to help prevent the financial markets from tumbling, reports the New York Times.

Hoping to avoid a systemic meltdown in financial markets, the Federal Reserve on Sunday approved a $30 billion loan guarantee to engineer the takeover of Bear Stearns and announced an open-ended lending program for the biggest investment firms on Wall Street.

In a third move aimed at helping banks and thrifts, the Fed also lowered the rate for borrowing from its so-called discount window by a quarter of a percentage point, to 3.25 percent.

The moves amounted to a sweeping and apparently unprecedented attempt by the Federal Reserve to rescue the nation’s financial markets from what officials feared could be a chain reaction of defaults.

It’s pretty scary when “systemic meltdown” is being used anywhere near the words “financial markets” in news reports about America’s financial system.

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • StumbleUpon
  • Google
  • TwitThis
  • Mixx
  • Propeller
  • Furl
  • Reddit
  • Technorati
  • Slashdot
  • blogmarks
  • YahooMyWeb
  • Live
  • SphereIt

Technorati Tags: ,

  • Buying Opportunity
    What goes up must come down. And, when it does, it is a buying opportunity. Writes Heather Timmons in the...
  • Gary FOP Sounds Warning About Reserve Officers
    The Gary FOP has sent letters to Lake and Porter County police departments warning officers to “not assume (Gary Reserve officers)...
  • Now Is The Time To Buy
    Steve Dalton at Northwest Indiana Real Estate says this is the time to buy real estate. Yes, inventories are high,...
  • Rumors of financial apocalypse
    Are we in the early days of financial apocalypse? I think we aren’t. Let me repeat that before you read...
  • Political Chess Match Begins Over 1% Income Tax
    The political chess game surrounding the 1% Lake County income tax is being played. The moves so far: The Lake...


  • Comments

    Leave a Reply




    Indiana Top Sites -- Indiana's Best Websites Vote for Us on Top Sites of America Web Sites List!
    Blog Flux Directory Local Blogs - Blog Top Sites NWI Blogger