(an email)

> On Fri, Mar 14, 2008 at 7:16 PM, someone wrote:
> Roubini sure did call it. I hope he is not on the money with
> his other calls.

Bear didn’t fold and didn’t have a problem due to a business failure. I’ll bet earnings (next week) are excellent, leverage is very low, and cash high.

liquidity is a strange animal. ge couldn’t fund itself one day a few years back on a stupid rumor.

i’d also guess bear doesn’t have a lot of, if any, miss marked securities, as that’s illegal reporting.

or securities where the cash flows are impaired. mainly because there aren’t many beyond the obvious equity type traunches of sub prime deals.

the securities pledged to the jpm/fed were all ‘qualifying’ secs and we’ll see Monday if funding those was sufficient to meet their cash flow needs.

that said, there will always be liquidity issues,

and people will get killed just as dead when someone yells fire in a movie theater were there isn’t a fire.

Bear Stearns could easily become part of a different name over the next few weeks.

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