I haven’t blogged anything about this J.P. Morgan-Bear Stearns business, partly because of March Madness and partly because I don’t really understand it very well. But even to a economics & finance ignoramus like myself, it seems like an obviously big deal. This paragraph from the linked WSJ article struck me as particularly ominous:
The sale of Bear Stearns and Sunday night’s move by the Fed to offer loans to other securities dealers mark the latest historic turns in what has become the most pervasive financial crisis in a generation. The issue is no longer whether it will yield a recession — that seems almost certain — but whether the concerted efforts of Wall Street and Washington can head off a recession much deeper and more prolonged than the past two, relatively mild ones.