This is seriously a big problem for the financial system. I don't see how the market could possibly hold up this afternoon going into this weekend, with something like this looming. I don't think anyone can predict how this will affect not only Bear Stearns, but a plethora of other institutions should they get into liquidity issues. What they are experiencing now is a classic "run", with all investors wanting to withdraw funds.
I still think we need to be wary of Washington Mutual as well. Which in my opinion will be much worse.
Oh btw,
1 dollar = 99 yen. Amazing
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