Bad lending practices rooted in greed.
It is annoying to read the news that JPMorgan will purchase Bear Stearns for $2 a share. The stock of Bear and Stearns has fallen from the high of over 150 to low of $30 and will likely fall again to low of $2 soon.
“No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear… Don’t be Silly” Source: http://seekingalpha.com/article/68222-ji…
In a capitalistic system why would the government get involved in affairs of private investors? How could a company which was promoted as a symbol of stability go down so fast?
It is remarkable times we live in. Would people take their money out of financial institutions because there will be more failures in the near future? What will happen to the dollar when all the OPEC countries change this currency in favor of the Euro? The feeling is that the price of oil will double. It’s important to remember that a lot of investors have been hurt by the greedy establishments. This will not be the last time.
