The Federal Crackdown on Bear Stearns Hedge Fund Managers
Anyway, they knew just how much exposure they had to bad subprime debt, but failed to let investors know about it. There are sharks all over wall street folks that will take you for everything you have if you aren’t careful. That’s why I recommend that you as an individual should know at all times just what you are invested in, play it safe until you know what you are doing, have a game plan, and always remember that it is better to preserve capital and live to play another day instead of trusting anyone you see on TV or on wall street and losing everything but the very shirt on your back.
That being said, the feds are just on a witch hunt. The real criminals are Greenspan, Bernanke, and the politicians that empower the banking cartel known as the federal reserve. This subprime crisis never would of occured if they just let markets correct and stopped creating more money to stop the dot com bubble bursting recession.
The moral hazzard is gone in this country. Banks don’t lose under helicopter Ben. We just socialize the losses of these wall street investment banks via the most regressive of taxes. Inflation is destroying the middle class. The sad part is, most of these people that the bureaucrats and federal reserve are destroying want to surrender even more power via more taxation and more regulation (ie. market manipulation in favor of the well connected). This isn’t a free market. This is socialism for the elite.
