"Douglas Johnson" <post@[EMAIL PROTECTED]
> wrote in message
news:nkpgu3p78aina78er24a8s58f599qe25jh@[EMAIL PROTECTED]
> Mark Bole <makbo@[EMAIL PROTECTED]
> wrote:
>
>
>>I have read only a few other musings of respected financial pundits,
>>some claim the Bear Stearns "save" was critical to avoid major meltdown
>>of the markets (something about not knowing what one's own exposure was,
>>as well as not knowing what one's clients' exposures were).
>
> Here is such a viewpoint from one of my favorite investment writers.
>
> http://www.investorsinsight.com/otb_va_print.aspx?EditionID=667
>
> His argument is that, like Long Term Capital, letting Bear Sterns go
down
> would
> have frozen the credit markets, caused a stock market crash, and
triggered
> a
> mild depression.
>
> He further suggests that the Fed may end up making a profit, but that
they
> do
> have $30 billion at risk in the meantime.
I didn't think the Fed's end of the deal was structured for any potential
upside. It should be, as was done with Chrysler.
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