WALL of SHAME chairman Bernanke who said the problem was contained

The Federal Reserve said it will bypass ailing banks and lend directly to American corporations for the first time since the Great Depression, and it hinted strongly at further interest-rate cuts — a cocktail of unconventional and conventional remedies for an economy whose prognosis is deteriorating rapidly.

Bernanke: Outlook for Economic Growth Worsens

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Amid the troubled economic environment, U.S. Federal Reserve Chairman Ben Bernanke says the central bank will need to consider whether the “current stance of policy remains appropriate.” Video courtesy of Fox News. (Oct. 7)

The historic and potentially risky move of lending to nonfinancial corporations, the latest in a string of extraordinary steps taken by the Fed over the past month, carries the government deeper into the role of propping up private markets. Investors remain unconvinced any of it will work.

Stocks continued their relentless decline on Tuesday amid fresh concerns about the health of financial institutions. The Dow Jones Industrial Average fell 508.39 points, or 5.11%, to 9447.11, its lowest closing in five years. Shares of Morgan Stanley fell 21%, and American International Group Inc., which already received a government bailout, saw its shares drop 9.3%. Over the past year, the U.S. stock market has lost $7.2 trillion in market value, as measured by the Dow Jones Wilshire 5000 index, which includes almost all U.S. companies. Stock markets in Asia continued their decline Wednesday morning, with Tokyo’s Nikkei Stock Average down 4.5%.

Excerpt from WSJ

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~ by behindthematrix on October 8, 2008.

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