What Happened To Bear Stearns Explained Simply Part 4

http://www.informedtrades.com/trades.php?page=course3

The fourth video in a series explaining what happened to Bear Stearns, the involvement of the federal reserve, the government, and JP Morgan.

Category:

Education

Tags:

• Bear
• Stearns
• mortgage
• housepricecrash
• subprime
• sub-prime
• cdo
• crash
• offbalancesheet
• stockmarket
• financial
• moral
• hazard

[RichardRoy2]

Thank you Dave. It will be interesting to see how much confidence people keep in other giant firms where a rumour can bring them to bankruptcy. How many more companys do you think the Fed can bail out. If they can't bail them all out, the last one will bring the rest of the 'glue' crashing down?

[InformedTrades]

Hi RichardRoy2, Thanks for the comment. It is definitely a valid concern. My opinion however is that the fed will probably not need to bail another bank out as the fact that they have agreed to lend to investment banks will remove the big question of who is not going to have enough liquidity to survive which brought Bear Stearns down. You see in my opinion it seems that Bear was ok before the rumors started so it was really the rumors that killed them. Best Regards, Dave

[IamNeutral]

What I find so interesting is that these types of financial videos that explains our economy & the current status that we are in, have such unbelievably low viewership. I guess people would rather look at Junk!.

[RichardRoy2]

Thanks Dave. It's a valid point, but there's still alot the Government can, and may, do to instill confidence or lose it. Funny, I was just about to say 'our Government' in reference to George W Bush, but I'm Canadian. And yet, he is still powerful enough to be considered that as well. The Government has been quite masterful at losing it. Maybe the next administration will have better 'luck'. Unfortunately, Ron Paul didn't have the charisma to stay the course.