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...
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