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To: proxy_user

Famous last words. This happened to Bear. Just 3 or 4 days before the collapse, they came on TV and said “We have $17 billion in cash, we’re fine”

And then everyone they owed money to said “Phew! Let’s go get it while we can” and the $17B dried up almost overnight. Then the other banks wouldn’t lend as they saw the money drying up.


14 posted on 04/01/2008 1:21:09 AM PDT by College Repub (http://whywontgodhealamputees.com/)
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To: College Repub

But now they have access to the Fed window, which has unlimited cash. If that had been the case with BSC, they would be in a different situation.


16 posted on 04/01/2008 4:29:47 PM PDT by proxy_user
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