Bear Stearns Bailout “Worst Fed Mistake in a Generation”

Here’s a glimpse at what must have been a fascinating discussion:

"The Federal Reserve’s moves to prop up Bear Stearns Cos. will come to be seen as "the worst policy mistake in a generation," the Fed’s past head of monetary affairs said. The action is comparable to "the great contraction" of the 1930s and "the great inflation" of the 1970s, said Vincent Reinhart, a scholar at the American Enterprise Institute, who retired from the Fed last fall.

Mr. Reinhart’s assessment, delivered at a panel discussion at the institute Monday, is one of the harshest appraisals yet by a high-profile observer of the Fed’s decision in mid-March to lend money to Bear both as temporary funding to make a merger possible, and then to finance $29 billion of Bear’s assets to make its takeover by J.P. Morgan Chase & Co. possible."

I’d love to get a recording or transcript of the speech. Any one have access?


Ex-Fed Official Declares Bear Deal Worst Mistake in a Generation
April 28, 2008 4:10 p.m.

Category: Federal Reserve, M&A

Read It Here First: “De-Financializing” the WSJ

Category: Financial Press

Recessions Impact on NYC vs USA

Category: Economy, Employment

Many States Are “In Recession”

Category: Economy, Taxes and Policy

Professional Money Managers Are Bullish

Category: Economy, Markets, Psychology, Valuation

Rhodes of Citigroup Says Credit Crisis `Half Way’ Over

click for video

William Rhodes, vice chairman of Citigroup about the outlook for the U.S. economy and financial markets, trade policy and his expectations for China’s growth.

Rhodes of Citigroup Says Credit Crisis `Half Way’ Over
Kathleen Hays
Bloomberg April 25 2008

Category: Credit, Derivatives, Video

Cognitive Surplus

Category: Psychology, Television, Web/Tech

Nobel Laurelates on the Economy

Category: Credit, Economy, Financial Press, Psychology

Greenspan’s Long-Lost Thesis

Category: Federal Reserve, Real Estate

Immoral Hazard

Category: Federal Reserve