You Can Save Bear but You Can't Save Me?
David Wessel makes a great point in today's Wall Street Journal about how JPMorgan's government-assisted deal for Bear Stearns may have changed the political dynamics of a broader bailout for struggling homeowners:
No matter the merits or intellectual distinctions, it is nearly impossible for a politician to explain the following: Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson were willing to risk as much as $30 billion of taxpayer money—without congressional approval—so that J. P. Morgan Chase could buy Bear Stearns cheap at an auction in which it was the sole bidder. But a taxpayer-backed rescue of homeowners whose mortgages are worth more than their homes is unwise and unwarranted.
Full article is here.
Tags: Federal Reserve | housing market | Bear Stearns
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Reader Comments
Some days the Bear eats YOU
I keep hearing the same old song... the bear went over the mountain... the bear went over the mountain... the bear went over the mountain... to see Ben Bernanke...
My big question is... with all of the bleeding of liquidity the life blood of Capitalism. Where does all of this money end up... $300 Billion here...$900 Billion there how much will the Fed have to Print to keep up with demand...and where does all of this green paper end up... ?
the $30 B bailout of Bear...
Guess what?
Divide $30 Billion Dollars by 300,000,000 people (US Population) and this means:
Each person is paying (sooner or later) $10,000 each for the Bailout.
Wow!
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Bailout
Do not spend a dime of my money on irresponsible buyers when I stood down and did not jump in the fray, Why should us prudent taxpayers foot the bill ?
Mar 21, 2008 16:25:51 PM [permalink] [report comment]