NJIT Finance Professor Michael Ehrlich warns the Federal Reserve to leap ahead of the curve.  Ehrlich, a market failure expert, sees the serious devaluation of Fannie Mae and Freddie Mac preferred stock—held widely by many US banks—as a serious bail-out consequence.  >>

Michael Ehrlich, a finance professor in the School of Management at NJIT, isn’t concerned about the current crisis in sub-prime mortgages. The former Wall Street managing director, who has had first-hand experience with stock market roller coasters, predicts that the Federal Reserve will respond to the crisis by injecting liquidity. >>