The business stories that matter, by Fortune's Colin Barr
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March 14, 2008, 10:25 am

Bear Stearns hits 11-year low

Bear Stearns’ (BSC) brush with failure sent investors fleeing the stock with renewed vigor Friday. Shares in the broker lost as much as half their value in furious morning trading after Bear admitted that its liquidity “significantly deteriorated” yesterday. That marked quite a turnabout from Bear CEO Alan Schwartz’s statement Monday that “Bear Stearns’ balance sheet, liquidity and capital remain strong.” At 10:20, Bear Stearns was down $22.94 at $34.06 after earlier hitting an 11-year low at $26.85.

After a steep opening selloff, though, other banks and brokers recovered to trade modestly lower. Goldman Sachs (GS) was down 2% to within a dime of its 52-week low, and Lehman Brothers (LEH) sank 4% after earlier tumbling as much as 11%. Clearly there are investors betting that at these low levels, the stocks offer a good risk-reward profile. With any luck those bets aren’t being made with borrowed money.

It is getting very serious out there…but will get worse

the property bubble pops the same time as teh credit bubble oh dear…i think you will find things will slowly crumble.

have a look at this vid if you want to know if you can be helped. http://www.youtube.com/watch?v=8Ze0qjjGA-8

Posted By jim australia : March 15, 2008 6:48 am
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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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