Note to Markets: Credit Will Be Saved - Equity Skewered

I am a big fan of what appears to have gone down in the Fed - JPMorgan - Bear Sterns deal. It worked out just about as well as it could given the situation.

Bear Stearns shareholders lost everything, which helps prevents moral hazard. Creditors, counterparties and clients were saved which keeps the financial system functioning.

When the dust settles this could be one central bankings finest moments.