A Movement Explained | The Weekly Standard.

The world came unhinged in the fall of 2008.

Tea Party

The United States had been in recession since the previous December, according to the Bureau of Economic Research, and in March 2008 the Fed had brokered a panicked fire sale of Bear Stearns to JPMorgan Chase. But the real drama did not begin until September, when the government nationalized mortgage giants Fannie Mae and Freddie Mac, Lehman Brothers went bankrupt, the government took over AIG, global credit markets froze, and a run began on money market funds.

To restore calm, President George W. Bush, Treasury Secretary Henry Paulson, and Federal Reserve Chairman Ben Bernanke proposed the $700 billion emergency Troubled Asset Relief Program (TARP) to bail out insolvent financial institutions. TARP failed in the House of Representatives on the first vote, sending markets into a tailspin, but was later passed  continue reading…