Roger Beep

Risk Management Lessons from Bear Stearns

The Bear Stern’s paper correctly points to an underlying investment metric that may assist the individual investor so as to avoid future investment disasters. Additionally, empirical study of this metric on other suspect companies is enthusiastically encouraged!

I would also like to see more analysis on why Bears Stearns went bankrupt and how it fits into the larger economic framework which the article did not address and which to me is primary because of the underlying far reaching consequences of this event. I would prefer a sound analysis on how the mortgage mess got off the ground and why in the U.S. and what it all means, and its corruption and fraud, etc.--in other words we need an objective scholarly assessment of the Bears Stearns bankruptcy in addition to a technically based investor metric that exploits the bankruptcy for future sales purposes. The author is expertly adept at rendering an adroit scholarly summary of the BSC bankruptcy and the subprime debacle.