What the Fed did was absolutely necessary. If Bear Stearns had failed, it would have crashed the financial markets.
If a financial firm of this size fails, it pulls all the others with it.
~ Dick Bove, banking analyst at Punk Ziegel, "Bear Stearns Dives After Fed Steps In With Bailout Funds," IBD, March 17, 2008
(He added that Bear's woes threaten banks overseas that are tied to the firm via a web of reciprocal guarantees and agreements. )