Last year, the US government made the right decision in letting the Lehman Brothers go belly up. ++ Lehman’s crash stated an example, that the banking house cannot count on government aid at any price. ++ As long as bank managements can trust on taxpayers’ money they have no incidents to minimize risks, thus, in order to limit risks, banks should provide henceforth more equity and assets. ++ To
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We are witnessing the worst economic conditions since the banking shutdown of 1932. ++ After rescuing Fannie Mae and Freddie Mac, and reluctantly doing so with AIG, the Fed declined to bail out Lehman Brothers or Merrill Lynch; the Fed had to draw the line. ++ Buying assets for US bonds is one method of stabilizing these failing institutions. ++ The collapse of this second financial system
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