Originally Posted by
Dianna219
TRUST- Jazzer hit it right on the head. Bear Stears was the target of malicious rumors being spread about the organization throughout the investment community, wrongfuly so, which in a matter of days, effected it's LIQUIDITY!!!
Therefore it's ability to operate was greatly impacted throughout the world and simply, nobody would trade with them (wonder who started that rumor, any thoughts???), as far as their investment base is concerned it was, is very diverse, teachers pension funds, government emlpoyees, private industry as well as many individuals (not all with 100mm net worth, mm=million in true lending write-ups, not car loans and consumer b.s) who utilized them for investment purposes, yes, something other than that never ending "I'll put you into a mutual fund" crap contunuously preached by your "local banker or stock broker" actually some people do have the "nerve" to make their own "calls", the nerve of them, bucking the "safe system", sheesh. If Bear Srearn were allowed to fail, then what would have happened to all of those teachers, municipal, county, state and federal employees "investment" and even the baker, candelstick maker and indian chief? Another typical scenario of those poor folks at WorldCom or Enron, (Greed is Good, who said that, hmm, and so is the company hyp, sorry any "victims") why would you want to invest in your employer, anyway, isn't your time investmernt good enough.
Good thing the Fed actually had the balls to do it, remember before the FDIC , all banks were "private" which resulted in the run on banks etc. After all isn't the purpose of a central bank to insure the "liquidity"of the capital base and therefore insuring the depositor base, regardless of size?!! to withdraw, deposit or invest as the capital base see's fit in their own minds. Plus, remember you are only insured by the FDIC to 100myes, that would be a thousand, not a "k") "per person" not, "per account".
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