The Fed’s Dilemma
It's really a difficult decision for the Fed to make: financial meltdown or moral hazard.
Vicious Cycle: Bear & Lehman
When you are in trouble, people shun away from you, bad words spread. More people refuse to deal with you (themsevles in panic). Then you are in deeper and deeper trouble. This is called “vicious cycle”. It brought down Bear Stearns. I wish Lehman Brothers could survive this.