Monday, September 15, 2008

A really good job by Bernanke and Paulson (amv)

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: [...]