The real question of course is whether the board, directors and senior officers of Bear Sterns should now be facing criminal malpractice charges for allowing a previously successful business to be run in this highly speculative fashion.
OF course they won’t – but probably only because Bear Sterns is just the tip of the iceburg and there are many financial institutions in a similar boat with huge leveraged positions on junk bonds.
This situation has got a lot further to go before it’s over yet.
:sarcasm: