Arnold Kling points out the first straightforward bailout in the US housing bubble pop: developers.
The Bear Sterns bailout is more complicated: Bear equity holders were not bailed out, Bear bondholders were, and JP Morgan was given a fat payout also. While the taxpayer is technically on the hook for "just" $29B, in truth, the Fed will pump in whatever amount of money is needed. I'm struck by the amount of informality this entire episode has had so far, the rules are just there to be changed.
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