cg's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/165049/comments http://seekingalpha.com/article/69659-recession-i-ve-got-a-solution?source=feed#comment-130691 130691 Mon, 24 Mar 2008 13:44:45 -0400 http://seekingalpha.com/article/68961-in-defense-of-jim-cramer-on-bear-stearns?source=feed#comment-128037 128037
Bear Stearns is a bank that among other things holds deposits for customers. The deposits are insured up to a point by the government..."Remember FDIC"...so deposits up to $100,000 are insured regardless of what happens to the bank, i.e., bankrupcy or takeover.

BSC is also a publically traded equity. Someone can have $100,000 on deposit at BSC and at the same time own $100,000 worth of its stock. If the stock goes bankrupt, the $100,000 on deposit is safe because it is insured by the government but the $100,000 investment in the stock would be mostly lost assuming the company doesn't emerge from bankrupcy and very little cash is left for shareholders upon liquidation.

It sounds like what Jim Cramer was saying on March 11th is that investors should not make a run on BSC and remove their deposits. Of course if a depositor had more than $100,000 in the bank ($250,000 for an IRA - see en.wikipedia.org/wiki/...) they could lose the balance above that amount. I don't think his advice to "not take your money out" was a reference to investments in the stock.]]> Tue, 18 Mar 2008 05:43:30 -0400
Bear Stearns is a bank that among other things holds deposits for customers. The deposits are insured up to a point by the government..."Remember FDIC"...so deposits up to $100,000 are insured regardless of what happens to the bank, i.e., bankrupcy or takeover.

BSC is also a publically traded equity. Someone can have $100,000 on deposit at BSC and at the same time own $100,000 worth of its stock. If the stock goes bankrupt, the $100,000 on deposit is safe because it is insured by the government but the $100,000 investment in the stock would be mostly lost assuming the company doesn't emerge from bankrupcy and very little cash is left for shareholders upon liquidation.

It sounds like what Jim Cramer was saying on March 11th is that investors should not make a run on BSC and remove their deposits. Of course if a depositor had more than $100,000 in the bank ($250,000 for an IRA - see en.wikipedia.org/wiki/...) they could lose the balance above that amount. I don't think his advice to "not take your money out" was a reference to investments in the stock.]]>