Tipsheet

Reid Doesn't Know Which Bank Failed

Does Harry Reid have any clue what's going on in the markets today? Take a look at part of his floor speech he delivered today in the Senate:
 “In the past few days, we’ve seen a real meltdown in our financial community. One major investment bank failed. Another is filing for bankruptcy. As we know, Bear Stearns was propped up because of government money. Lehman Brothers is being purchased by another bank. It’s hard to comprehend that Bear Stearns is no longer in existence and Lehman Brothers is, in effect gone. The name may be saved, but that would be all."

Those watching this stuff know that Lehman collapsed. No one purchased it, it's going into bankruptcy. Merrill Lynch is being bought by Bank of America. And, Bear Stearns is not being "propped up." It's gone because JP Morgan bought it, partially because the government gave JP a multi-billion loan to do it. So, if anybody is being "propped" it's JP.

As Majority Leader Reid is the most powerful policy maker in the Senate. Hopefully, he gets his facts straight soon.