On September 18, 2008, on Thursday, at the Fed’s private conference, the US Congress’s surprise leadership announced that the US economy completely collapsed in a few days in a great danger. Senator Christopher Dodd said that in this room, oxygen is actually a rest time.
When the real estate bubble rupture and the toxic mortgage loan in 2007 became bad, the fear spread to a large company that constituted the heart of Wall Street. Until the spring of 2008, the rumors of the investment bank Bear Stearn were borne by billions of dollars in bad mortgage loans, and it would soon fail.
Former CEO of the former CEO of Bear Stearns Alan Ace Greenberg, the former CEO of the front line, said that there are rumors that they can simply close them.
The company’s share dropped from $ 171 per share to $ 57, and it took a few hours to explain bankruptcy. Ben Bernanke, chairman of the Federal Reserve. Obviously, it must be included. Bernanke’s colleague, economist Mark Gertler, said his head was undoubted.
Bernanke is a former commercial professor at Princeton University, which specializes in the global economic crisis. Getler explained that he estimates more than anyone else, if it is out of control.
In order to stabilize the market, Bernanke has established a shottery marriage between the bear and the commercial bank JPMORGAN, and promised that the federal government will use $ 30 billion to cover the suspicious assets of the bear with toxic mortgage loans. Essence This is an unprecedented effort to prevent the infection of fear, and fear seems to threaten the rest of Wall Street.
Henry Paulson, former manager of Wall Street, is public and is uncomfortable with the market’s interference in the market. This summer, he warned his former colleague, do not expect the future government ram competition, and said that he was worried about a legal concept called moral harm.
