Paper 3

“Unusual periods of turmoil” , that could be considered a pretty good description of the financial situation the United States finds itself in. This was a quote from Treasury Secretary, Henry M. Paulson, Jr., out of an article I read in the news just today entitled “Two Senate Panels Investigate Bear Sterns Deal”. I read it at Yahoo Business News but it originated at the nytimes.com site. In this article written by David Stout, our Treasury Secretary was referring to the taxpayer backed takeover of the Bear Stearns firm. The Bear Stearns firm is one of the latest casualties in the subprime mortgage crisis. And this was a very old, respected firm that was supposedly on solid ground. It seems that the subprime bleed over is growing bigger and bigger everyday.