Bear Stearns (BSC): Beginning of the End?
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Could the Bear Stearns (NYSE: BSC) bailout news be the beginning of the end of the credit crisis?
In June of 2007, news of trouble at some Bear Stearns hedge funds that were invested heavily in sub-prime mortgages was the story de jur. This possibly marked the beginning of the beginning of the subprime crisis.
Today's news that the New York Fed bailed out Bear Stearns shows that the bank was near collapse, which was in large part due to a lack of confidence. If there was no bailout, it could be assumed that Bear Stearns would have had to seek a fire sale or worse - bankruptcy.
Someone had to fail from all of the credit mess. Bear Stearns started it - will their demise finish it?
In June of 2007, news of trouble at some Bear Stearns hedge funds that were invested heavily in sub-prime mortgages was the story de jur. This possibly marked the beginning of the beginning of the subprime crisis.
Today's news that the New York Fed bailed out Bear Stearns shows that the bank was near collapse, which was in large part due to a lack of confidence. If there was no bailout, it could be assumed that Bear Stearns would have had to seek a fire sale or worse - bankruptcy.
Someone had to fail from all of the credit mess. Bear Stearns started it - will their demise finish it?
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