I hate to admit it, but the government was right to intervene in the Bear Stearns fiasco.
Without intervention, the collapse would have perhaps triggered a “world turned upside down” scenario. It seems that everyone is now talking about systemic financial collapse.
Here’s a quote from recent Congressional testimony….
A failure to save Bear Stearns, said Timothy F. Geithner, the president of the Federal Reserve Bank of New York, would have led to “a greater probability of widespread insolvencies, severe and protracted damage to the financial system and, ultimately, to the economy as a whole.”
