Tilted Forum Project Discussion Community - View Single Post - The Fed bailout Bear Stearns, should they bail you out too?

Yakk · 04-02-2008, 02:23 PM

Bear Sterns stockholders where bought out at 2$ on the 100$ approximetally.

Stockholders are analagous to Homeowners. You can leverage a home and you can leverage stock. In both cases, the owner has last rights to assets, and infinite upside on price increases.

So, provide guaranteed loans that allow someone to mass purchase defaulted homes at 2$ on the 100$.

Wait, that's a pretty crappy bailout, isn't it? The owners of Bear Sterns got screwed.

04-02-2008, 02:23 PM	#5 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	Bear Sterns stockholders where bought out at 2$ on the 100$ approximetally. Stockholders are analagous to Homeowners. You can leverage a home and you can leverage stock. In both cases, the owner has last rights to assets, and infinite upside on price increases. So, provide guaranteed loans that allow someone to mass purchase defaulted homes at 2$ on the 100$. Wait, that's a pretty crappy bailout, isn't it? The owners of Bear Sterns got screwed. __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.