The Fed's actions "eliminated forever the possibility that the Federal Reserve could serve as an 'honest broker,' "

Bear Stearns just got

relief from their sinking ship;

they got a

government bailout.

Economist slams Bear bailoutVincent Reinhart, a former senior policy adviser to Alan Greenspan and current Federal Reserve Chairman Ben Bernanke, said the central bank's rescue of Bear Stearns was the "worst policy decision in a generation."
"The panicked decision" may prove as damaging as Fed policy errors that caused the "great contraction" of the 1930s and the "great inflation" of the 1970s, he said Monday.
The Fed's actions "eliminated forever the possibility that the Federal Reserve could serve as an 'honest broker,' " said Reinhart, a resident scholar at the American Enterprise Institute.