Hey, Bernanke: Just say no to banks!

Source: CNN-Money

NEW YORK (CNNMoney.com) -- It looks like the Federal Reserve has opened up a can of worms.

The Fed, by agreeing to take part in JPMorgan Chase's bailout/buyout of Bear Stearns (BSC, Fortune 500), sent the signal that it might be willing to step in and help other firms take over struggling banks.

The central bank said it will back $29 billion of potential losses by Bear Stearns. JPMorgan Chase (JPM, Fortune 500) is only on the hook for a $1 billion hit.

Here's something for Bernanke to consider on this. JP Morgan will take the first $1 billion hit and then the federal reserve (tax payer the next $29 billion). Considering how smart of banker Jamie Dimon really is, say there is a loss of $15 billion from Bear. Would you think he'd show $15 billion - he'd actually get his accountant on the line and show $16 billion on the books :)

Why save those that plundered with money from hard working tax payers? The justification that this is for greater good seems to be one that just doesn't make much sense to say the least.