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To: calgarydude who wrote (30872)3/15/2008 2:03:19 AM
From: energyplay  Read Replies (1) | Respond to of 217545
 
I don't there will be much left for Bear Stearns stockholders when this is over - maybe 25% on the dollar. We could make a good argument that 0% would be better, and taxpayers or the FED should not allow even that 25%.

But turning millionaires into paupers tends to scare the rest of the investors so bad they will not take risks for twenty years are more - talk to the generation that survived the depression.

A 75% haircut teaches people to be careful about risk.
A 100% loss teaches people to avoid all risk.