Jeremy Siegel on Bear Stearns, the Rate Cuts and Inflation

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The ongoing credit crisis in U.S. financial markets has claimed a huge and high-profile victim: Bear Stearns. After being slammed by what amounted to a run on the bank during the week of March 10, the Wall Street firm agreed to be acquired -- for $2 a share -- by JP Morgan Chase over the weekend in a deal overseen by Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson. The Federal Reserve lowered interest rates the same day -- and did so again on March 18, by three-quarters of a percentage point. Are other Wall Street firms likely to follow Bear Stearns into oblivion? Will the Federal Reserve's efforts help to boost confidence in the financial system? Finance professor Jeremy Siegel, author of The Future for Investors, discussed these questions and more with Knowledge@Wharton.

Channel: News & Politics
Uploaded: March 19, 2008 at 9:19 am
Author: knowledgeatwharton

Length: 0:17:56
Rating: 4.00
Views: 10,382

Tags: Knowledge@Wharton FED discount rate bear sterns

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Video Comments:
jsyc07 (Wednesday 29th of October 2008 10:49:47 AM)
It was good that the Fed lowered rates but they don't do enough to fight inflation? LOWERING RATES HELPS CAUSE INFLATION! All the Fed does is create inflation! Jeremy Siegel shouldn't be teaching economincs in public school let alone Wharton.
benjleeru (Tuesday 21st of October 2008 12:57:21 PM)
rofl, "we don't have runs on banks anymore". Funny story, we have plenty of bank runs.
CivilRiot (Thursday 16th of October 2008 05:41:55 PM)
Wow, someone fire this retard before he further embarrasses himself.
savastis4 (Tuesday 15th of April 2008 06:39:37 PM)
Mr. spin doctor, apologist for central palnners. Wander why Charlie Munger called jim demented?
iwunder (Monday 24th of March 2008 03:42:45 PM)
Jontpython..trying to obfuscate what inflation is not helpful. A Proper definition of inflation is needed inflation=increase in money supply. The fed can be ever-vigilant....but the system is too far gone...they know it...it's a corrupted system that is coming to the end of it's life cycle...it's obvious that our worldwide economic system is dying...Our money system is dying...Buy gold, buy silver...
daveextra (Sunday 23rd of March 2008 04:49:36 AM)
professor j.siegel ? professor of what ? public relations for the federal reserve bank and bush administration/greenspan/bernanke fictitious paper inflationary cheap credit boom ? the value which has been spent/consumed has'nt been produced yet. if you really are a professor of economic's, how come you did'nt see this disaster that's nowhere near played out yet, coming ?
iwunder (Saturday 22nd of March 2008 09:21:23 AM)
Purchasing Gold/Silver using debauched/devalued currencies is a strong show of NO CONFIDENCE in their leadership...Vote while your dollars still have some purchasing power By the way...WE DO HAVE RUNS ON THE BANKS...WE JUST HAD ONE WITH BEAR STEARNS!
iwunder (Saturday 22nd of March 2008 09:17:06 AM)
2:10 I am concerned that the fed is not acting as concerned about inflation as it should...Of course the Fed is not concerned about inflation, the Fed is responsible for inflation... increase in money supply=higher prices.... it's not that hard of a concept to understand, inflation is created by the Fed for the Fed and it's buddies...we get stuck with the bill.. (higher prices for everything)