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THEDOCTORI

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Member Since: 4/2007Last Seen: 10/07/2009

On the brink of disaster

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"Is it better to let Bear Stearns fail and risk setting off a market collapse that costs a million jobs?" The answer, of course, is no. Bear had about $13 trillion of derivatives deals with counterparties, according to its most recent financial filings. If Bear had croaked, large parts of the world could have croaked. And the economic damage could have been catastrophic.

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{"commentId":1642494,"authorDomain":"thedoctori"}

Tough choice: bailout the shysters or let the entire banking system fail.

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  • 2 votes
Reply#1 - Tue Apr 1, 2008 1:15 AM EDT
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