http://www.pbs.org/wgbh/pages/...down/etc/synopsis.html
on PBS right now
Discussing Geithner, Bernanke deciding to give money to JP Morgan to lend money to Bear Stearns after figuring out their assets were toxic
Saying the plan backfired, because the FED singled them out as in trouble, so it caused further panic
Apparently Paulson wasn't supportive of doing the bail out as a free market guy. JP Morgan offered $4 a share for Bear Stearns. Paulson made them buy it for $2 to punish Bear.
Fannie Mae and Ginnie Mae get bailed out.
Lehman is next. Paulson said he wouldn't bail him out. He was mad at the CEO of lehman for not willing to sell. Lehman was also heavily invested in mortgages for high risk, large returns. But though for sure they would get bailed out because they were too big to fail. Paulson and Geithner brought in the big boys and said the government wasn't going to help, and these companies had to help themselves and work together.
but no one wanted to step up. Lehman failed. then the credit market failed. Oops.
Next AIG was about to fail because they placed their money in mortgages. but Bernanke loaned $85 this time.
Finally, Bernanke calls Paulson saying the need a big comprehensive plan. They sat down with congress and said the economy will fail or else. Asking for the $700B bailout without any oversight to buy the toxic bailouts.
house Rs vote against the bill and the market collapses.
new plan, direct capital injection. Paulson didn't like it, again free market. Bernanke publicly backed him, but privately supported it.
Congress secretly adds lines in the bill to allow for direct capital injection. and the bill passes.
now the crisis has spread worldwide.
Paulson forced to use direct capital injection. calls in the CEOs. said it wasn't a negotiation.
terms were on a single page and signed that night.
Summary:
Follows Paulson's erosion of free market principles as he's forced to abandon them to save the economy.
on PBS right now
Discussing Geithner, Bernanke deciding to give money to JP Morgan to lend money to Bear Stearns after figuring out their assets were toxic
Saying the plan backfired, because the FED singled them out as in trouble, so it caused further panic
Apparently Paulson wasn't supportive of doing the bail out as a free market guy. JP Morgan offered $4 a share for Bear Stearns. Paulson made them buy it for $2 to punish Bear.
Fannie Mae and Ginnie Mae get bailed out.
Lehman is next. Paulson said he wouldn't bail him out. He was mad at the CEO of lehman for not willing to sell. Lehman was also heavily invested in mortgages for high risk, large returns. But though for sure they would get bailed out because they were too big to fail. Paulson and Geithner brought in the big boys and said the government wasn't going to help, and these companies had to help themselves and work together.
but no one wanted to step up. Lehman failed. then the credit market failed. Oops.
Next AIG was about to fail because they placed their money in mortgages. but Bernanke loaned $85 this time.
Finally, Bernanke calls Paulson saying the need a big comprehensive plan. They sat down with congress and said the economy will fail or else. Asking for the $700B bailout without any oversight to buy the toxic bailouts.
house Rs vote against the bill and the market collapses.
new plan, direct capital injection. Paulson didn't like it, again free market. Bernanke publicly backed him, but privately supported it.
Congress secretly adds lines in the bill to allow for direct capital injection. and the bill passes.
now the crisis has spread worldwide.
Paulson forced to use direct capital injection. calls in the CEOs. said it wasn't a negotiation.
terms were on a single page and signed that night.
Summary:
Follows Paulson's erosion of free market principles as he's forced to abandon them to save the economy.
