Is there a spreading crisis of confidence in the global financial system?

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It's getting closer ... The recent federal action that allowed Bear Stearns, the fifth largest financial bank in the US, to be acquired by JPMorgan, using US tax dollars to smooth the deal, is evidence that a confidence crisis looms. Why? Normally the Fed would not consider such action.

Bear Stearns is in trouble because of their own greed and poor decisions. The normal and logical process would be to allow them to fail. This would be the "fair" thing.

But the Fed did not dare to do this, because they just did not know how far the entangled financial shenanigans would extend throughout the financial banking industry. The fear was that, if confidence in these banks fell too far, that they would all go tumbling down, domino-like, into ruin. The financial repercussions were just too unknown and too dire to contemplate.

So, even though few people have any sympathy for the leaders of Bear Stearns, most think that the fed did the right thing by stepping in. Confidence is so important in this industry. What is happening today is scary, and a lot of people have no idea how close we may be to a serious economic downturn.

I suspect that most people assume that these multibillion dollar corporations all use due prudence in their actions, and are backed up adequately. The truth is that simple confidence is a crucial part of what keeps them afloat. It an absurdly flimsy strand to hold together something so important, but there you are.

My heart goes out to the average worker at Bear Stearns, especially those who may lose their jobs. Many of them probably had a lot of their earnings tied up in the Company stock, which is now almost worthless. The leaders of the Company can sit back on their multimillions, but the little guys will be hit hard.

I hope that the fed can hold things together for long enough for the industry to get their houses back in order. If not, we are in for some tough days ahead.

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Social science. Name the famous Rajputs dynasty?

What is the general view with perspective of social science.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.