Pt. 5 America’s Bankrupt Banks (Inside the Meltdown)
On Thursday, Sept. 18, 2008, the astonished leadership of the US Congress was told in a private session by the chairman of the Federal Reserve that the American economy was in grave danger of a complete meltdown within a matter of days. “There was literally a pause in that room where the oxygen left,” says Sen. Christopher Dodd (D-Conn.). As the housing bubble burst and trillions of dollars’ worth of toxic mortgages began to go bad in 2007, fear spread through the massive firms that form the heart of Wall Street. By the spring of 2008, burdened by billions of dollars of bad mortgages, the investment bank Bear Stearns was the subject of rumors that it would soon fail. “Rumors are such that they can just plain put you out of business,” Bear Stearns’ former CEO Alan “Ace” Greenberg tells FRONTLINE. The company’s stock had dropped from $171 to $57 a share, and it was hours from declaring bankruptcy. Federal Reserve Chairman Ben Bernanke acted. “It was clear that this had to be contained. There was no doubt in his mind,” says Bernanke’s colleague, economist Mark Gertler. Bernanke, a former economics professor from Princeton, specialized in studying the Great Depression. “He more than anybody else appreciated what would happen if it got out of control,” Gertler explains. To stabilize the markets, Bernanke engineered a shotgun marriage between Bear Sterns and the commercial bank JPMorgan, with a promise that the federal government would use $30 billion to cover Bear Stearns …
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$125 Billion Dollars!!!!!!
They actually inserted a two line addittion into the bill to allow for these capital injections when they figured out the taoxic asset buy would not work.
David Faber says “these guys don’t know what they’re doing”.. referring to Congress…
…words never uttered while the market shot to heaven with shit on its shoes. oh no!
this is “risk” look it up
tarp was suppose to buy toxic assets…those wall street banks invested that cash in ASIA!!!!…mother fuckin swine
Black mailing is not new. When our gov’t doesn’t see the reasons of bubbles, they’ll only trap all people with narrow minded solution. Wild fires must be treated with isolation, not fuel injection. Those heading seats of a bonzy scheme should not be taken by our public servants. New safer credit system must be immediately relocated instead of pulling in those painful stake holders again and again in the disaster areas.
and the prophet muhammad didnt like paper money
or u could of waited and had dow 1000 and lose all faith in the markets forever….
if you take out a loan there needs to be interest i understand that, but what’s resonable, wall steet is greed. Too much caused this
It was a sad day when they passed that bill.
you cant setup a nation on debt and interest. interest is forbidden in islam