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Why did the American government bail out Bear Stearns?

April 26, 2017American BAIL bear government Stearns

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Why did the American government bail out Bear Stearns?

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In truth, no one knows what would happen if a firm as large as Bear Stearns collapsed. The only way to truly know would be to let it happen, and since there is the strong possibility of a “ripple effect,” it would seem prudent to avoid an experiment of that nature.