The Fall of Bear Stearns
The fall of Bear Stearns:
There I was, yesterday, opining to Barry Eichengreen that Ben "Credit Channel" Bernanke was not going to let Bear Stearns collapse, was going to rescue it--and that as a result BS was a buy Thursday afternoon.
Never have I felt so right--and so wrong--as I do this morning.
From my perspective, I thought this morning's news was good: J.P. Morgan feels strong and liquid enough to undertake a rescue. I had not known that. That makes me think asset prices today should be higher--not lower.
But clearly I am not Mr. Market...
