Comments on: Reflections on Bear Stearns and the future of financial stocks http://www.thickenmywallet.com/blog/wp/2008/03/26/reflections-on-bear-stearns-and-the-future-of-financial-stocks/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: 45free http://www.thickenmywallet.com/blog/wp/2008/03/26/reflections-on-bear-stearns-and-the-future-of-financial-stocks/comment-page-1/#comment-8444 45free Wed, 26 Mar 2008 18:02:46 +0000 http://www.thickenmywallet.com/blog/wp/2008/03/26/reflections-on-bear-stearns-and-the-future-of-financial-stocks/#comment-8444 There is an old saying "if you see a line at your bank, join it". A lot of this happened at Bear. The rumours that Bear was experienceing a liquidity crisis caused a liquidity crisis. TMW is spot on with the deposit taking comment and I would add that, until this week, brokers could not go to the Fed to borrow the same way a bank could if that line formed. While I agree that it is not over, the question is really, is it priced in? A funny note...CNBC is reporting that a group has entered the Bear building in NYC and protesting that Bear is getting a bailout but homeowners are not (a very reasonable argument). The funny part of this story is that, the group who is protesting, offers a no downpayment, no closing costs, below market rate, sub prime mortgage. There is an old saying “if you see a line at your bank, join it”. A lot of this happened at Bear. The rumours that Bear was experienceing a liquidity crisis caused a liquidity crisis. TMW is spot on with the deposit taking comment and I would add that, until this week, brokers could not go to the Fed to borrow the same way a bank could if that line formed.

While I agree that it is not over, the question is really, is it priced in?

A funny note…CNBC is reporting that a group has entered the Bear building in NYC and protesting that Bear is getting a bailout but homeowners are not (a very reasonable argument). The funny part of this story is that, the group who is protesting, offers a no downpayment, no closing costs, below market rate, sub prime mortgage.

]]> By: WhereDoesAllMyMoneyGo.com http://www.thickenmywallet.com/blog/wp/2008/03/26/reflections-on-bear-stearns-and-the-future-of-financial-stocks/comment-page-1/#comment-8437 WhereDoesAllMyMoneyGo.com Wed, 26 Mar 2008 13:26:49 +0000 http://www.thickenmywallet.com/blog/wp/2008/03/26/reflections-on-bear-stearns-and-the-future-of-financial-stocks/#comment-8437 Thanks for the link TMW! Thanks for the link TMW!

]]> By: Hannah http://www.thickenmywallet.com/blog/wp/2008/03/26/reflections-on-bear-stearns-and-the-future-of-financial-stocks/comment-page-1/#comment-8435 Hannah Wed, 26 Mar 2008 12:42:28 +0000 http://www.thickenmywallet.com/blog/wp/2008/03/26/reflections-on-bear-stearns-and-the-future-of-financial-stocks/#comment-8435 One thing that I would consider is that while banks rarely go under, they can nonetheless have their stocks drop in value. Unless you're investing for the long term, I would take a lot of care in choosing a bank stock, assuming it's "recession-proof". CIBC is the perfect example of this. It might be back up to it's former levels in 8 or 9 years, but for now it's not something to hold for the relatively short term. One thing that I would consider is that while banks rarely go under, they can nonetheless have their stocks drop in value. Unless you’re investing for the long term, I would take a lot of care in choosing a bank stock, assuming it’s “recession-proof”. CIBC is the perfect example of this. It might be back up to it’s former levels in 8 or 9 years, but for now it’s not something to hold for the relatively short term.

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