Is The Credit Crunch Ever Going To End?

Is it ever going to end?

Representative Henry Waxman, chairman of the House Committee on Oversight and Government Reform, questioned Richard Fuld, the ex-chief executive of Lehman Brothers, on Monday.

We woke up Monday morning, all of us, hoping for the best but bracing for the worst. The federal government’s $700 billion bailout package had been passed into law, which offered hope of a respite from this unrelenting crisis — or at least a chance to catch our breath.

We all needed a break. But we didn’t get one. Instead, we got yet another horrible weekend. In Europe, the credit contagion raged like a wildfire. The Dutch government seized Fortis, the Belgian-Dutch bank. The German government bailed out a huge lender, Hypo Real Estate. European governments raced to follow Ireland’s lead and guarantee all bank deposits, fearing that if they didn’t, depositors would move their money to “safer” countries with... (Read Full Article)

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