What is this Federal insurance talked about in this article? If it is the traditional type Fed Deposit insurance, paying out on that may not have been as expensive as the current buyout. And why are we so concerned about the gamblers and their hedge funds? I'm just not getting how we allow this unsustainable financial game to continue as is. Is this what capitalism is supposed to be about? Is this the functioning of a healthy democracy?

I don't have answers, yet i am deeply concerned when we have a government of a few people that can readily use the working taxpayers money to bail out people who pay a relatively small percentage of their active and passive income to support the common good. Where is the bailout for teachers? For working commuters who are flat taxed with rising fees for everything from bridge tolls to bus fees?

People are hurting and there is nowhere for them to turn. Maybe the head of Bear Stearns can still enjoy his bridge game when things are falling apart, but others around the country are wondering how to pay the rent and feed their kids while costs are increasing exponentially and they are losing their jobs. (must they sign up for the army?)

We cannot continue business as usual.

JPM is shouldering the burden of the Bear Stearn's buyout, not the taxpayer. The taxpayer is merely giving JPM a special line of credit to settle the inevitable lawsuits that shareholders will file. The taxpayer will actually make money on this one, the loosers are the bear shareholders.

Here's what will happen: Bear has a lot of assets and debts on the balance sheet. Some of bear's assets are rising in value, others are falling. JPM will sell the shitty assets, and keep the good ones. Had JPM not bought bear wholesale, there would have been a fire sale of all of bear's assets, good and bad.