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Jeremy Siegel on Bear Stearns, the Rate Cuts and Inflation

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The ongoing credit crisis in U.S. financial markets has claimed a huge and high-profile victim: Bear Stearns. After being slammed by what amounted to a run on the bank during the week of March 10, the Wall Street firm agreed to be acquired -- for $2 a share -- by JP Morgan Chase over the weekend in a deal overseen by Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson. The Federal Reserve lowered interest rates the same day -- and did so again on March 18, by three-quarters of a percentage point. Are other Wall Street firms likely to follow Bear Stearns into oblivion? Will the Federal Reserve's efforts help to boost confidence in the financial system? Finance professor Jeremy Siegel, author of The Future for Investors, discussed these questions and more with Knowledge@Wharton.

Channel: News & Politics
Uploaded: March 19, 2008 at 4:19 pm
Author: knowledgeatwharton

Length: 17:56
Rating: 3.75
Views: 10104

Tags: bear  discount  FED  Knowledge@Wharton  rate  sterns  

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Video Comments

savastis4 (April 16, 2008 at 1:39 am)
Mr. spin doctor, apologist for central palnners. Wander why Charlie Munger called jim demented?
iwunder (March 24, 2008 at 10:42 pm)
Jontpython..trying to obfuscate what inflation is not helpful. A Proper definition of inflation is needed inflation=increase in money supply. The fed can be ever-vigilant....but the system is too far gone...they know it...it's a corrupted system that is coming to the end of it's life cycle...it's obvious that our worldwide economic system is dying...Our money system is dying...Buy gold, buy silver...
daveextra (March 23, 2008 at 11:49 am)
professor j.siegel ? professor of what ? public relations for the federal reserve bank and bush administration/greenspan/bernanke fictitious paper inflationary cheap credit boom ? the value which has been spent/consumed has'nt been produced yet. if you really are a professor of economic's, how come you did'nt see this disaster that's nowhere near played out yet, coming ?
iwunder (March 22, 2008 at 4:21 pm)
Purchasing Gold/Silver using debauched/devalued currencies is a strong show of NO CONFIDENCE in their leadership...Vote while your dollars still have some purchasing powerBy the way...WE DO HAVE RUNS ON THE BANKS...WE JUST HAD ONE WITH BEAR STEARNS!
iwunder (March 22, 2008 at 4:17 pm)
2:10 I am concerned that the fed is not acting as concerned about inflation as it should...Of course the Fed is not concerned about inflation, the Fed is responsible for inflation... increase in money supply=higher prices.... it's not that hard of a concept to understand, inflation is created by the Fed for the Fed and it's buddies...we get stuck with the bill.. (higher prices for everything)


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