Why Did Some Economists and Policymakers Criticize the Fed and Treasury

question 60

Essay

Why did some economists and policymakers criticize the Fed and Treasury for arranging the sale of Bear Stearns to JP Morgan Chase in 2008?

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Definitions:

Union Shop

A workplace where employees are not required to join the union in order to be hired but must join shortly thereafter and remain members as a condition of employment.

Secondary Picketing

Picketing at other than the employer’s place of business.

Severance Pay

Compensation provided to an employee upon termination of employment, often depending on the length of service.

Discretionary Bonuses

Additional pay that is awarded at the employer's discretion and is not guaranteed, often based on company or individual performance.