Does Bear Stearns Bailout Mean No Bear Market?
Does Bear Stearns Bailout Mean No Bear Market? Thursday March 20, 2008#spacer{clear:left}#abc #sidebar{margin-top:1.5em}zSB(3,3) Federal Reserve Chairman Ben Bernanke Photo:Chip Somodevilla /Getty Images The Federal Reserve’s emergency weekend rescue of Bear Stearns may signal that the stock market has bottomed, thus avoiding the 20% decline that defines a true bear market. The rescue, coupled with the use of the discount window, and underwriting of JP Morgan Chase and other banks, assures failing financial institutions that the Fed will take on their bad debt, which allows them to keep lending. (Source: Guardian, Bottoming Process Begins with Bear, not Bear Stearns,