Liar, Liar, Pants On Fire

The Dow, S&P, RUT, and the Financial sectors in the markets took it on the chin today. Why? Because Bear Stearns, the 5th largest brokerage firm was bailed out by the NY Federal Reserve Bank and JP Morgan. After a week of denying the rumors that they were short of cash, this morning came the news that they were short of cash. So much so, that they would have had to shut down. That would have caused a disaster in the markets, and possibly a mini-crash. It would have left thousands of investors with their accounts frozen for weeks.

So like usual, the Federal government comes in with our tax money and makes everything OK again. Wall street does what they want, makes millions, then investors lose the millions and the government comes in and bails them out. Sounds like a familiar story.