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March 16, 2008

Paulson lies about Bear Stearns bailout

The U.S. Treasury Secretary may deny it, but Friday’s Federal Reserve commitment to guarantee whatever investment J.P. Morgan would make to rescue Bear Stearns is a bailout. And, as I said yesterday, we should let Bear Stearns go belly-up if that’s what happens, just like Drexel Burnham Lambert 20 years ago.

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