It looks like we've hit the market and economic bottom?
Along with the Bear Strearns collapse, evidence is found in a Sat. March 21, Financial Times story.
The FT reports that, "Central banks on both sides of the Atlantic are actively engaged in discussions about the feasibility of mass purchases of mortgage-backed securities as a possible solution to the credit crisis.
"Such a move would involve the use of public funds to shore up the market in a key financial instrument and restore confidence by ending the current vicious circle of forced sales, falling prices and weakening balance sheets.
"The conversations, part of a broader exchange as to possible future steps in battling financial turmoil, are at an early stage. However, the fact that such a move is being discussed at all indicates the depth of concern that exists over the health of the banking system."
Read the whole story here (subscription usually required, but the FT generally makes stories like these public).
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