Come on now, you can't be serious! Bear Stearns is the gift that keeps on giving, but the thing is, they're just the tip of the iceberg. Thousands of hedge funds, pension funds and foreign countries will now implode as the CDO-uber-leveraged US housing market melts down.
Just turn in the keys and walk away Jim Cramer says. And that's exactly what folks are doing.
Tilt. Head for the hills. This sucker is gonna blow. Err, make that "blowing", active tense.
Bear Stearns Halts Redemptions on Third Hedge Fund
The Bear Stearns Asset-Backed Securities Fund had about $900 million invested in asset-backed securities, including mortgage bonds, spokesman Russell Sherman said today in a telephone interview. The fund was overwhelmed by redemption requests, Sherman said.
The fund's stumble is a setback for New York-based Bear Stearns and illustrates how the crisis in the subprime mortgage market has spread. The fund had less than 0.5 percent of its assets in securities linked to loans to subprime borrowers, Sherman said. The two funds that collapsed invested almost fully in subprime bonds. Losses have spread to banks, insurers and hedge funds in France and Australia, including one run by Macquarie Bank Ltd.
``This shows you don't necessarily have to be a subprime fund now to be having problems,'' said Bryan Whalen, a portfolio manager in Los Angeles at Metropolitan West Asset Management, which oversees more than $21 billion in fixed-income assets.