The Government Stood Firm. Was It the Right Call?
The source: Real Time Economics
The teaser: "The bottom line from the Fed: While it will was willing to take a pragmatic and expansive approach to preserving market stability, there are limits to its willingness to bail out firms that the market needs to understand. Its strategy: Let Lehman go and make sure primary dealers have lots of liquidity. That kept with the central bank’s lender-of-last resort authority and became a step toward extricating itself from the bailout game."
The rest: [...]
