The Financial Crisis Of 2007-2008 Essay

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When discussing the financial crisis of 2007-2008, it is incredibly important to discuss the relevance of the government bailout and organized sale of Bear Stearns. There is a large amount of discussion behind whether or not Bear Stearns, a large investment based financial institution, should have been bailed out by the US government. The decision to bail out and have a government-orchestrated sale of Bear Stearns was an incredibly complicated situation to discuss and there are parts of which cannot be understood and only inferred upon. Whether it be personal stake in decision, the desires of the country, or even the effects of the bailout, all play an effect on the opinions on whether or not Bear Stearns should have been saved through government intervention. In addition, we are left with several other factors to discuss, such as what motivation was there for a bailout and who benefited by the sale of Bear Stearns? Before these questions can truly be answered however; the events, choices, and people involved with the fall and sale of the major player in the subprime mortgage crisis must be discussed to fully discuss what is being dealt with.

The failure of Bear Stearns was a large number of failures working towards a much larger failure. As a whole, the failure and bailout of Bear Stearns was entirely revolved around the 2007 subprime mortgage crisis. The subprime mortgage crisis was a major contributor to the financial crisis of December 2007 to June 2009 and was

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