World Economy Enters Weekend in Turmoil
Compiled from InsiderAdvantage and Southern Political Report staff
March 15, 2008 —
(Washington) Financial markets trembled across the world Friday as news spread that the infusion of over $250 billion into the U.S. financial market earlier this week was part of an effort to bail out investment firm Bear Stearns. After the markets closed word leaked that another major U.S. financial institution might be facing a similar fate. President Bush issued statements of reassurance and the Fed made it clear that it would continue to flood the market with liquidity. But experts now are stating that the nation is either in or entering “severe recession” and many political insiders within Bush’s own party are pushing for a bi-partisan emergency effort to head off public and market panic. The arrangement between the New York Fed and JP Morgan to assist Bear Stearns represents the first major federal rescue of a major banking/financial institution since 1929.
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