Bear Stearns: Three Cheers for the Bankers

The Bear Stearns case shows once again that the US is a country where the interest of the rich prevails. By throwing tax-payers money into Bear Stearns’ tottering balance the Federal Reserve helps Bear bankers (regarded as some of the most ruthless in Wall Street) to get afloat just enough so their debtors are still liable to JPMorgan and thus carry the losses of the collapse of the mortgage system. The excuse is, of course, that an open collapse of the financial sector would have even worse effects on the whole country, including the poor, and hence must be avoided at any cost. But if this patch doesn’t manage to stop the bleeding, as it may well not given the world scenario, the result is going to be again the rich getting away with their pockets stuffed and the people (in this case, the homeowners) having to pay for the rich’s greed and foolhardiness. I must admit that I don't know too much about financial issues but I do know some about shame and don't see any in this move by the Fed. What happened with the invisible hand? Was it busy holding all the money Bear bankers made during the last decade? Once again we see the rhetoric at the service of the interest of a few.