Tuesday, September 11, 2007
Shrewd or insane?
Currently sub-prime is all the rage and talk is that it will drag the US economy and then the western world into recession. US investment bank Bear Stearns has been heavily hit by sub-prime problems but just when you thought it was safe to say, "I wouldn't touch Bear Stearns with a barge pole" along comes billionaire UK investor Joseph Lewis and buys a 7% stake. Is Lewis seeing something that others are not or is Bear Stearns so unpopularly that it was too good a chance for Lewis to turn down? I just don't understand Lewis' motivation on this one. Thoughts?