It's a funny way of putting it, but that is exactly what the Fed is doing. It whacks down one mole, only for another to pop up somewhere else in the financial system. It is a measure of how desperate they are that Bear Sterns was bailed out on Friday and sold on Sunday for $2 a share. Now that's a fire sale! Thursday the CEO said they were worth $80 a share. Yeah, right. I believe him.
Meanwhile the markets want to know if there are other zombie banks out there waiting to follow Bear Sterns. I imagine it will get worse before it gets better. Meanwhile Alan Greenspan is finally recognizing how bad things are, even if he still refuses to admit that it's his fault.
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