Monday, March 22, 2010
Bear Stearns
In the spring on 2008 the housing bubble burst and created trillions of dollars of toxic morgages. Bear Stearns invested billions into the housing market and when that failed Bear went into crisis mode. Over a weekend Bears share went from $171 down to $57. This in time would cause a dommino effect and hurt every bank doing business with Bear, and if they collapsed a great depression would have been inevitable. All banks quickly cut off all ties with Bear, and their stock dropped down to two dollars a share. As this contagious virus was spreading Ben Bernanke created a shotgun marriage between J.P. Morgan and Bear to salvage the market and granted $30 billion to cover the toxic morgages. Bear was saved but left many American bankers jobless.
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Very interesting topic and very new to me. Although I found that your blog supposrt efficisnt information, maybe you should put more of your personal statement in it as well.
ReplyDeleteWell written and supported by great facts and structure, but it does lack personal input. However, I believe even without your personal input you successfully achieved your goal in trying to give an overview of the tragedy that bear sterns suffered.
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