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Forum Post: Bernanke’s fairy tale recession story for kids

Posted 6 years ago on April 16, 2012, 9:31 p.m. EST by darrenlobo (204)
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[-] 1 points by geo (2638) from Concord, NC 6 years ago

The Fed may not have. That doesn't mean that the banks didn't know that if they were all holding large CDO's/CDS's of bad mortgages that the government would do nothing to stop a complete financial meltdown once the dominoes started falling.... and fall they did.... Bear Sterns, Merrill Lynch, WAMU, Wachovia, AIG, etc......

[-] 1 points by MattLHolck (16833) from San Diego, CA 6 years ago

anyone go broke

[-] 1 points by geo (2638) from Concord, NC 6 years ago

That is what much of the bailout cash was used for... paying off CDS's that defaulted, the FED buying up bad paper and later reselling it back to the originating banks at discounts, all to ensure little damage was done to the investors. They should have gone broke.