FEDRERAL RESERVE BAILS OUT BEAR STEARNS

Yes, the Fed to the rescue. I am not an expert on this issue, but here is what I understand. A European bank refused to extend credit to Bear Stearns, which effectively declared Bear Stearns as insolvent. This caused a run on the bank.
The Federal Reserve met last night and allowed an emergency EXCEPTION:
1. JP Morgan, the clearing house for Bear Stearns, was to be allowed to bring Bear Stearns collateral to the Fed's discount window. This would allow Bear Stearns to raise CASH.
2. JP Morgan would not be liable should Bear Stearns default to the Fed.
Bear Stearns reportedly has about $400 Billion of the not so good real estate loans in their portfolio. No one knows what their value is due to the changing real estate market.
Read More: http://money.aol.com/news/articles/_a/fed-pledges-to-supply-cash/20080314104309990001
and More : http://www.bloggingstocks.com/2008/03/14/why-does-bear-stearns-need-a-government-bailout/