Fed ‘Bailout’ of Bear Stearns First of its Kind Since Great Depression

From: Democracy Now

MAX FRAAD WOLFF: …I take a bit of an issue with the description that Bear Stearns was bailed out. Everybody Bear Stearns does business with was bailed out. Bear Stearns was taken out by the Federal Reserve and JPMorgan, which then served Bear Stearns’s still-warm remains to JPMorgan Chase [one of the owners of the “Federal” Reserve – ed.]. …

NOMI PRINS: … So when I was talking to my old friends there and my old colleagues there, I was getting comments like, you know, this is like getting literally punched in the face. This is like—one of the fellows who runs one of the areas said, “You know what? This is literally like having, you know, a child die. It’s like being raped.” It’s all of these things. You know, you leave work on Friday after the stock is down $30, you come in on Monday morning, having heard Sunday that you’re being taken out at $2 a share, and you know. And one of the guys in there who actually kind of was knowing what was going on said, you know, this was the government shutting us down.
So, as Max was saying, a bailout is one way to look at—the Fed bailed part of the banking industry out by shutting down Bear Stearns and coming in there to look like it was saving the day.

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