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The Capital Destruction of Bush America
Alcuin Bramerton
exemplary raw data. This was a bank which had survived the Great Depression of 1929-1939. But it could not survive Pandora's Recession of 2007-2008. At the point of Bear Stearns' collapse into the leprous arms of JPMorganChase, the bank had 15,000 employees worldwide. In April 2007, its market capitalisation had been $18 billion. This had reduced to $3.5 billion by Friday 14th March 2008 and, finally, to $0.24 billion by Monday 17th March 2008. The capital destruction at Bear Stearns was 98.67%. One million USA dollars invested in Bear Stearns in April 2007 was worth $13,333 eleven months later, minus dealing charges. The value of Bear Stearns was seventy five times less than it had been a year previously. In parallel with this and over the same period, the value of the USA dollar had fallen by 18% against the Euro. Question: Why did Bear Stearns collapse? Answer: Because the other American banks lost confidence in the value of its investments in sub-prime mortgages. It's the psychology, stupid.
alcuinbramerton.blogspot.com/2007/11/criminal-collapse-of-citibank-and.html