The worst part is its all legal! The investment side shorts BSC the ratings side down grades BSC while the corperate side refuses to lend to BSC because of the downgrade. All the big players get paid off insurers bond holders board members etc, while the stockholders get screwed. Business as usual in corperate America for the little guy.
Bear Stearns Shareholders Sacrificed for the Economy [View article]
It comes back to the arguments MORAL HAZARD VS GREATER GOOD theory. Case one: Better to have the Fed action than to loose the economy. We see all people through the fed taking action for all people to be rewardwd/protected ie the economy. Case two: Not so in Bear the greater good is being applied but Bear is forced to take the greater pain. The ability to access the discount window was offered to other investment banks like GS but only after the deal was struck. If this same openig had been made only hours earlier Bear would not have gone down and the shareholders pension etc whould not be carrieing the burden pain for the greater good.
Time To Start Buying Some Dogs? [View article]
A Conspiracy to Kill Bear Stearns? [View article]
Profiting From the Bear Stearns Buyout [View article]
The Worst Trade Of All Time [View article]
Bear Stearns Shareholders Sacrificed for the Economy [View article]