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The Scramble to Save Bear

The WSJ has been talking to Bear Stearns directors, JP Morgan executives, Fed officials, and others, and has a wonderful narrative of exactly what happened this weekend, complete with a fantastic lead quote. The overarching impression is of both banks and regulators scrambling to keep up with - let alone stay ahead of - deteriorating real-world events. The bailout of Bear was policy on the fly, and no one has a clue what the long-term implications might be. What we're looking at is tactical firefighting, not strategic policymaking.

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