Tuesday, 25 March 2008


>Estimated deployment of 30000 troops and $30bn.
>Actual deployment of 150000 troops and approx $600 bn till now.
>The most liberals estimates of the subprime crisis expect write downs of only $300 - 400 bn.

1907 - 2008
J.Pierpont Morgan rallied the Bankers and Trust institutions in 1907 to withstand the onslaught of recession. The write downs amounted to around $18bn. By coincidence it was J.P.Morgan,the bank, that bailed out Bear stearns in 2008 March.
After a series of rescue measures in 1907 , The Federal Reserve was formed, most prudently, in 1913 as a regulator. Will we see the establishment of another, equally far reaching, institution now. A Federal Mortgage Crisis Emergency Reserve perhaps ?

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