Thursday, July 19, 2007
The true ‘Fundamentals’ – It’s one HUGE credit driven bubble!
It’s taken weeks for its analysts to figure out, but investment bank Bear Stearns has finally unveiled the extent of the losses suffered by investors in its beleaguered hedge funds. The revelation that there was practically no value left in the funds sent markets reeling. But this could just be the beginning… Bear Stearns yesterday revealed to the world just how much value was left in its two hedge funds that were invested in subprime mortgage debt. Investors in the most highly leveraged fund will get none of their money back. Investors in the less risky one, will get nine cents for every dollar they put in - in other words, they’ve lost 91% of their money.