Discussions - What is the Repo Market and how was Bear

2 discussion 24 hours

http://www.pbs.org/wgbh/frontline/film/meltdown/ - link to video

1. Watch the Frontline video entitled  “Inside the Meltdown”  for this discussion. The video discusses the Repo Market and Bear Stearns’ reliance on it.

Answer the following questions:

· What is the Repo Market and how was Bear Stearns impacted by it?

· What was the impact of the near failure of Bear Stearns and the failure of Lehman Brothers on money markets?

· What actions were taken by the Federal Reserve and the Treasury Department?

· What was the impact of those actions?

· Do you think those actions were justified? Why?

Be sure to rely on sources and cite your references in APA format.

2. -Do you think that the Fed should have bailed out large financial institutions during the credit crisis?

-Should the Fed or Congress decide the fate of large financial institutions that are near bankruptcy?