Fed's Bernanke Defends Bear Stearns Bailout, Paints Glum Economic Picture

Federal Reserve Chairman Ben Bernanke Wednesday
touched on a variety of factors contributing to the current weak state of
the U.S. economy, but also defended the Fed’s recent actions to
facilitate a deal that prevented a major investment bank from
collapsing.

He said that several measures taken by the Fed to
encourage inter-bank lending, thereby broadly improving
the availability of new lines of credit to…

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