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Bear Stearns, Do we realize how close we came to 1929'?

By
Services for Real Estate Pros with Taylor 1 INC

 Is it me or did we come terribly close to being in 1929' on March 16, 2008. For those who are not aware (and many are not) Bear Stearns is an investment Bank a securities trading and brokerage Bank!

Bears Stearns recently agreed to a merger with JP Morgan Chase in part to save their butts, but in another way it was to save the US economy!

In an unprecedented act, our government gave BS a non recourse $30 Billion loan. A non recourse loan simply means a loan for a certain collateral. If the loan goes belly up only the collateral is seized personal assets are not).

 What did this really mean???

Understand this! Bear Stearns is directly connected to almost every Major Bank Globally. BS is one of the largest underwriters of mortgage loans and a controller of Numerous Hedge funds. We all know what's been going on with the Real Estate market in recent years. Who do you think underwrote most of those loans???

Many of our Nations Pension funds, 401K funds and savings funds were housed in Bears Stearns' Hedge funds. Can you imagine waking up on March 17 and finding out that your pensions or 401K accounts were now non-existent!? 

What would you have done? What would many Americans have done? 

What did Americans do September 3, 1929?

The strange thing is that most Americans were unaware of the importance of this day or it's events. Very few of my friends and associates even knew who Bear Stearns Co. was?

Even the Media gave it second fiddle to reports of the Democratic War of Words for the day.

America has to get a hold of this mortgage crisis and soon! I'm tired of our government stating that it's going to work itself out. I can't imagine how?!

I'm not usually pushing Government intervention, however It's time to solve the problem and stop worrying about who's at fault!

 At this point, It really doesn't matter...

 

I'd love to hear my fellow AR family member's views... 

 

 

Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!
We just closed on a short sale with Bear Stearns. They were very good to work with and we got a great negotiator who we worked well with to get our seller a fully satisfied short sale with no deficiency judgment, no 1099, no derogatory credit. Katerina
Mar 29, 2008 05:43 PM
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR Associate® RS-76763 - Honolulu Hawai'i

Aloha Klarque, 

I'm glad you made this post, I'm not sure where your information came from but I have a very different take on what happened with Bear Stearns. This may sound a little rancorous but it's not meant to be and I certainly don't want you to be offended. I think it's important that people ask the right questions when something like the Bears Stearns fiasco goes down.

I'm curious who are the people who have/had money in Bear Stearns? It has been public knowledge since August of last year that Bear Stearns was in big big trouble. Considering all the negative buzz about the hubris of their former CEO Jimmy Cayne who played bridge while "Rome burned". What individuals or companies stayed invested in Bear Stearns whose 401Ks are/were in jeopardy? You would have had to be as "stoned" as Mr. Cayne apparently was to have kept your money in B.S. or asleep. The bear was dead way before the bail out and the stock holders and investors new it. Bailing out B.S. is socialism for the rich. So those few mega rich could get some return on their withered portfolios. I'm not sure about you but I can't afford to buy stocks in hedge funds and neither can most employers. If my employer invested my 401K in the secondary mortgage mart I would probably would be working for an investment banking firm. How does it effect the average American; your tax dollars are lining Rich investors pockets because they could'nt stand losing billions because of their own bad, greedy decisions.

Peace

Mar 29, 2008 06:29 PM
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

I appreciate the 'heads up'

 Have you read Donald Trump and Robert Kiyosaki's book "Why we want you to be rich?"

 I think you would like it and it says we all need to wake up!

 

 

Mar 29, 2008 06:31 PM
Clark Garrison
Taylor 1 INC - Atlanta, GA
"Loan Modifications"
Thanks Kimo, I definitely respect your point of view
Mar 30, 2008 06:05 AM
Clark Garrison
Taylor 1 INC - Atlanta, GA
"Loan Modifications"
Thanks Pam for the book reference, i'll have to get that one asap
Mar 31, 2008 06:13 AM
Esko Kiuru
Bethesda, MD

Klarque,

Bear Stearns was knee-deep in mortgage investments, but most people didn't know that. And Washington deliberately downplayed how serious the situation with its liquidity problems was. Proper oversight had likely caught onto its weakening position earlier.

Mar 31, 2008 06:25 AM