US struggles to prop up house of cards - by Anne Davies
Ben Bernanke wrote his doctoral thesis on the causes of the Great Depression and what really triggered it. Less than two years into the job as chairman of the US Federal Reserve, he's getting to test his theories — and the world is holding its breath. As the global financial markets melted this week under the pressure of highly leveraged investments that are being unwound at an alarming rate, Bernanke is trying desperately to slow the tide. It is not a job for the faint hearted. On the floor of the exchanges, distressed traders wring their hands. Sleepless bankers appear on the financial networks, desperate to gain the time they need to salvage their companies. Former billionaire Hank Greenberg of American International Group is near tears as he talks about the end of the empire his family built.
A Rassmussen poll, released on Thursday, found only 7% supported the use of taxpayers' funds to bail out companies; 65% opposed such a move. A chorus of blame has also been directed at the Bush Administration for its hands-off, anti-regulation approach to the market.
No comments:
Post a Comment