All Posts Tagged With: "Bear Stearns Bailout"
Volcker: Fed’s Bear Stearns Bailout Sets Dangerous Precedent
Former Fed chief Paul Volcker has warned that the Fed’s recent use of “long-dormant” powers may set a dangerous precedent for the future, causing “market participants” to factor another Fed bailout into their increasingly reckless trading strategies.
“Whatever claims might be made about the uniqueness of current circumstances, it seems inevitable that the nature of the Fed’s response will be taken into account and be anticipated, by officials and market participants alike, in similar future circumstances,” Volcker said in prepared testimony before Congress.
Rogue Operation, Where Are You?
Reading this Bloomberg story about the increasing demands being made on the Fed, I couldn’t help but think of the theme song to the vintage TV series “Car 54, Where are You?”
Optimism on the Street
US stock futures are pointing up following news of a $5 billion cash injection into Washington Mutual.
According to a report in The Wall Street Journal, the mortgage lender is close to a deal to get a $5 billion injection from TPG and other investors — a deal not brokered by the government, as was the recent Bear Stearns bailout.
The deal seen by some analysts as a sign that the financial sector is starting to pull out of the credit crisis.
Latest News
- FDIC Braces for More Bank Failures, Expands Offices4:32pm CDT
- Global Investing Roundups Thursday, August 28th, 20083:16pm CDT
- Dow’s (DJI) Earnings Slump Will Lead to More Inflationary Policies3:10pm CDT
- Chrysler Considers Sale of Gas-Guzzling Viper1:10pm CDT
- Look Deeper Into Housing Numbers And You Will See A Different Picture1:04pm CDT
- Bank Failures Could Mean 79% Gains on XLF December 20 Puts9:32am CDT
- Vangard Wellington (VLEX) Is a Great Bear Market Play7:29am CDT
- Why AIG (AIG) Is a Bargain and Ford (F) Is Not6:36am CDT
- Resource Stock Roundup Wednesday August 27, 20084:24pm CDT
- Base Metals Plummet, Weakness in Europe Suggests Recession is Spreading2:58pm CDT
- Dollar Strengthens, Weak German Data Send Euro Lower2:47pm CDT
- Crude Rises, threat of Hurricane Gustav to Gulf Facilities Drives Market2:41pm CDT
- Gold Erases Big Early Losses, Posts Small Gain2:20pm CDT
- Fed Signals Rate Hike for Next Move, But Timing Uncertain12:24pm CDT
- 2 ETFs and 4 Mining Stocks to Profit from $1,500 Gold11:34am CDT
- Byron King Says Commodities in a Short-Term Correction9:55am CDT
- Global Investing Roundups Wednesday, August 27th, 20089:53am CDT
- Buy Fannie and Freddie Debt Now at Record Yield Spreads7:09am CDT
- Real Inflation of 13.6% and Failing Euro Mean Gold Will Soar6:07am CDT