Your Startup in Context
March 17, 2008
Looking to start a company that relies on debt? What about a hedge fund? You might want to consider thinking about your startup in context with the rest of the market/world. You might have noticed Bear Stearns implosion over the weekend. One year ago the company’s stock traded for over $150/share, on Sunday the company sold to J.P Morgan for $2/share. Why did he company (all but) fail? The company owned two hedge funds with sub-prime exposure that simply tanked and erased almost $20 billion dollars in equity. Is Bear Stearns the first domino to fall? I recommend shorting Legg Mason next…
