The economics of the future will require incorporating wisdom from a variety of academic disciplines, creating new tools, and developing new perspectives.
The Bear Stearns Bailout, Ten Years Later
Ten years ago, the investment bank Bear Stearns collapsed. Its controversial rescue by the Federal Reserve and JP Morgan Chase marked a prelude to the global financial crisis, which would begin in earnest in September 2008. As part of INET’s look back at the financial crisis, we offer this series of reflections on the Bear Stearns bailout, the financialization of debt, and the moral hazard of government bailouts of banks.