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Fed Chairman Ben Bernanke's Lies About AIG, Lehman Brothers, and Goldman Sachs

There are a lot of questions we all should have about the bailouts: Why was Lehman Brothers, Goldman Sachs' main competitor, not bailed out?  Why did the Fed give AIG $85 billion, of which $13 billion went to  Goldman Sachs?  Chairman Bernanke, in a speech given today, claimed: The case of the investment bank Lehman Brothers proved exceptionally difficult, however.... [T]he company's available collateral fell well short of the amount needed to secure a Federal Reserve loan of sufficient size to meet its funding needs. As the Federal Reserve cannot make an unsecured loan, and as the government as a whole lacked appropriate resolution authority or the ability to inject capital, the firm's failure was, unfortunately, unavoidable....Sounds plausible, right?  Most lies, when read in isolation, are plausible...continue to full post

Full post as published by Crime & Federalism on August 21, 2009 (boomark / email).