by Michael Covel
The implosion of Bear Stearns was just the tip of the iceberg…
At the time, the full extent of the damage to the housing market was unknown. No one had an accurate sense of how broken the banks really were. And no one had any idea that the global economy was about to crack under all of the pressure.
But Bear Stearns’ collapse and the market reaction made it crystal clear that all was not well.
The signal that Bear Stearns was sending was not “All clear”… it was “Look out below!” But few were paying close attention.