Inside the Meltdown

Using the following links to the Frontline video Inside the Meltdown, answer the following questions: 

• Short Version: https://youtu.be/HX6Fg62l0e8
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1. What was the impact of the near failure of Bear Stearns and the failure of Lehman Brothers on Money Markets?
2. What actions did the Federal Reserve and the Treasury Department take? What were the impacts of the decisions if any?

Respond to classmate post:

With the videos provided it is pretty easy to realize the impact that the near failure of Bear Stearns and the failure of Lehman Brothers on Money Markets was a pretty large impact. Going from the beginning of the week having owned or owning stocks in a company worth roughly $30 to the end of the week them being worth 2 is not an easy pill to swallow. The impact left the employees of the company in disbelief after what wall street was doing to them. Pretty much as a result of Bear Sterns actions the company and its investors were going to be punished. The federal reserves and treasury department took action in the punishment process. They bought the stocks in the company for $2 when the week before they were worth $30 and declared that there would be no bailout for Sterns and that he was being punished. They wanted it to be so painful for the Bear Stern shareholders that it was almost as if going out of business would be a better option. As a result of all of this the federal reserves and treasury department aimed to send a message that there is consequences for your actions. There goal was to portray that there will be no safety net from the government to anyone, or anyone on wall street whenever you need it.