Last evening, I watched the documentary, "Inside the Meltdown" as presented on Frontline and PBS. This presentation is an excellent accounting of hour by hour developments associated with the handling of the financial meltdown, and decisions made by Paulson, Bernanke and Congress, as events unfolded while trying to quell the systemic disaster in its tracks.
Last September 18th, the astonished leadership of the U.S. Congress was told in a private session by Federal Reserve Chairman, Bernanke, that the American economy was in grave danger of a complete meltdown within a matter of days.
Especially interesting to me was the unfolding of events that led to the bailout (packaged as a J.P. Morgan Chase buyout) of Bear Stearns, while later allowing Lehman Brothers to bite the dust.
Essentially the country was forced into a position of tossing the principle of "moral hazard" out the door, because the problem had become systemic financially - both in this country and globally.
Here's the link to "Inside the Meltdown"... It is streamed from PBS, and can be watched at your leisure. I highly recommend this for your viewing! Prepare to be astonished!
Coldwell Banker Realty - Davenport, FL
32 Years of Real Estate Experience .
There is also a very good 2 hour show running on CNBC called "House of Cards" that is a documentary of the bank meltdown from Wall Street's perspective. I don't know if you can watch it from their web site but it has been running a fair amount on their TV station in the evenings.
Feb 18, 2009 02:09 AM
Keller Williams Salt Lake City, Utah - Salt Lake City, UT
Thanks Myrl! I am going to watch this right now. I think we (as Americans) should put much more emphasis on engineering degrees (because of the long term approach that is taught) as opposed to finance degrees (where short term money making is taught). It is ludacris what some people can get away with. I mean come on who needs a $30,000 toilet? Certainly not the person that presided over Merrill Lynch during their down fall.
Feb 18, 2009 02:24 AM
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth
Myrl, do you really think the world would end if they did nothing? All that cash infusion and the economy is STILL in trouble. I wonder. The story I heard from this meeting was that the credit markets would have been frozen if not for the bailout.
Feb 18, 2009 03:36 AM
Sacramento, CA
Greater Sacramento Realtor - Retired
Alan - I'll need to watch for that!
Ron - I fully understand. I think the problem with Wall Street is that so much of it is based on perception, blue sky, and abstract concepts that can get into mischief while reality is ignored.
Li - You're very welcome!
Gary -I will go to my grave thinking we would have been damned if we did, and damned if we didn't! I don't think we fully understand how much damage would have been done to the retirement accounts of many Americans, as well as other investments had we not acted. . .The problem was that systemic! However, the average American has seen their 401K take a whopper devaluation anyway. Quite honestly, I am so upset about these bailouts, that I would almost be willing to have lost everything, to have seen the "Moral Hazard" principle left intact. The fact we are most rewarding those that got us into this predicament makes me crazy! On the other hand, as I've said before, I'm holding my nose with the fingers of one hand, while I have my fingers crossed with the other. I find it so ironic that Paulson, who is an unapologetic free capitalist, who believes in little or NO regulation of the markets, got to deal with the fruits of his beliefs. . .and in the end made the decisions he did!
Feb 18, 2009 04:00 AM
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist
I also watched it. Quite an interesting take on things, leaving one to be, to use your word, "astonished."
Feb 19, 2009 01:58 AM
Rainmaker
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Myrl Jeffcoat
Greater Sacramento Realtor - Retired
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