I don’ t think Bear Stearns basically admitting they are insolvent is such a big deal. It’s just a flesh wound. It’s stuff like this that keeps me bearish on the market. It is very simple really, there is just way too much bad paper floating around out there and the source of that bad paper (housing bust) shows no signs of a bottom. The FED only has so many bullets they can shoot here and they are running low. There are going to be more Bear Stearns before this is all over, and the Govt will step in with a massive bailout. This is truly getting scary.
