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Reggie - as always first class and amusing insight into the I Banks. As I live outside the U.S. I cannot understand why both the Fed and the Treasury are pulling out all the stops to save the I Banks. Has the world stopped as a result of Bear Sterns demise? From an outside perspective the U.S. is becoming a socialist state propping up every deadbeat financial institution. I think the line about systemic risk is just a smokescreen.

When will the Fed and the Treasury realise that the failure of a few financial organisations is part and parcel of a properly functioning economy. The problems that are occurring now are the result of the previous Fed chief doing whatever it took to avoid a recession in 2001 and hence causing much greater problems later on. By trying to avoid problems now they are only storing them up and making them worse later on. Or is this a grand strategy of the Bush administration to dump the problems on an incoming Democratic organisation. I don't think he's that clever!