Lately, I have begun to grow tired of the countless complaining about the Bear Stearns buyout. To make sure that things are clear, I, like the many who complain, also believe: 1) that this was a financial boon to JP Morgan, orchestrated by the Fed and the Treasury at the expense of the public, 2) that Bear could have been saved, 3) Bear's demise would have not ended the world as we know it, 4) Was irresponsible and set a bad precedent for the market.
So, just to clear things up with the collective blogosphere and those few in the MSM - we are all on the same page. I hear you!
What drives me crazy is the following:
1) I think some bloggers do not like the bottom that may (or may not) have been attempted to be put into the financials, if no the market, with the move. Instead they would rather harp on how preposterous such a move was, than to elaborate any further.
2) I think some bloggers (understandably) believe that this is a very provocative story (it is!!!) and thus in absence of anything else to write will just find news clips, or comments on the deal and comment on how ludicrous it is. While, once again I agree, it pains me to see such great minds complaining about something that they have absolutely no control over, providing very little if any relevant new information. (We get it!! Bear Stearns was screwed.)
and most notably
3) Many bloggers will complain, will imply "shadiness", but never really say what I believe they are thinking, and what needs to be said. Perhaps they fear being pigeonholed as a "one of those conspiracy theorists", and wish not to tarnish any reputation that they have, or have been given.
Anyways, while I believe that numbers 1 and 2 are running rampant in many blogs, I believe that many of the really great blogs are just suffering from the problems in number 3. Luckily, a main reason I began this blog in order to cover the financial stories that didn't make the mainstream media, and since the econoblogosphere has seemed to converge with the MSM lately, I believe it is time to face the reality on the JPMorgan Bear Stearns Affair.
The following are facts about this situation that you may or may not know:
1) The Federal Reserve is NOT the government. It is a private bank that is inserted within the government structure with major banks as stakeholders - although the terms of ownership is not too clear. Unlike a corporation, it is not concerned with making a profit, rather it wishes to maintain stability in the banking system. It is a very secretive organization that has gone unregulated by the government for some time now. While this may sound crazy - it's the facts. See the overview of the Federal Reserve System for more information.
From the Federal Reserve Website
The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution.