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.
Bill Schachter of NY @ Apr 12, 2008 18:10:39 PM
lamont cranston of @ Apr 11, 2008 20:32:23 PM
Derek of MD @ Mar 21, 2008 16:25:51 PM