The sub-prime lending precipitated economic crisis

The US Federal Reserve bailed out a big investment bank- Bear Stearns- not a regular retail bank where citizens have put in their savings but an investment bank that was in the business of making profits like your regular private company. It failed because of its poor decisions and bad practices, most likely the result of its managers' desire to strike it rich by hook or by crook. We have seen that in the last big economic crisis that hit 7-8 years back- the Enrons, Worldcoms and the deeds of their managers that brought disaster to people who worked there and people who invested in those companies. But the Federal Reserve did not bail them out. But this time under very similar circumstances the Federal Reserve in all its wisdom decides to use taxpayers money to bail out the greedy managers. I wonder if the association of the US Treasury Secretary with Goldman Sachs , another investment bank, has anything to do with it. After all he was its CEO before he took on the present job. What are friends for after all! And they can always justify the decisions with some very sophisticated financial jargon and people would believe.I wonder if the Fed would do the same for every citizen who has lost his house in a foreclosure- again the same set of conditions- bad decisions and desire to get rich quick!But I doubt it. Its only the super-rich and powerful that get all the privileges. The rich are allowed to privatize their profits while socializing risks involved!! They can always rely on the government to bail them out!! The idea of a "moral hazard" is only for the common man.

And is there a conspiracy to have crisis every 7-8 years and why does it always come close to a US presidential election ??

But the bottom line is- GREED !!! Reminds me of a story by Leo Tolstoy- "How much land does a man need?"


Chew on it....!!!