Ode to Bear Stearns
by Nomi Prins, Mother Jones, USA - Fortunately, I have no stock left in Bear (I sold it to support my writing habit), except for a retirement plan worth, well, not so much. My remaining connection is with former colleagues and friends, and people have been emailing me who I haven't heard from in a decade, as though someone had died. Bear was a corporation that underwent, like so many others, explosive growth based on overleveraging subprime and other risky securities. That, coupled with bad management of an unregulated business, is what in the end caused it to run out of cash, much as people who can't pay off their declining valued homes go into foreclosure.
Comments (2)
Nomi, there is nothing like an insider's perspective - not to mention a thoroughly honest analysis without any of the spin. Our economy is in a devastating and rapid decline. Many, many people will suffer a great deal. I appreciate so much having writers like you help us understand the root causes and point us to the way out, whether or not Washington listens.
Posted by Kate Daniels | March 19, 2008 10:15 AM
Nomi, I love your writing and I appreciate your telling us how it is. But, how do we return to a system of rational regulation? I fear that those in power, regardless of whether they are Democrats or Republicans, politicians or corporate executives, do not have the inclination or courage to lower their incomes, tighten their belts, and truly show empathy for the people they serve or lead. After being on the inside, do you see any hope? How do you suggest we get more people to really see and accept what's going on?
Posted by Elisa | March 20, 2008 12:15 PM