Excellent article on recent US credit crisis

The following links to Robert J. Samuelson's Newsweek article, "Beware the Bailout? In rushing to fix one problem, has the Fed created others?"

Here is a very telling quote from page 2:

Whether Bear Stearns was the victim of unfounded rumor or of genuine rot in its securities portfolio is unclear. But that very uncertainty defines the nature of the modern financial crisis—and the difficulties facing the Fed in trying to contain it. Financial institutions (banks, investment banks, hedge funds and others) are interconnected through networks of buying, selling, borrowing and lending. These require confidence that commitments made will be commitments honored. If that confidence collapses, the process of extending credit for the economy and of trading—for stocks, bonds, foreign exchange—may also collapse. (Emphasis added)