The Aftermath from the collapse of Bear Stearns

People were surprised how fast a major firm can suddenly collapse. In just one week, Bear Stearns lost the majority of their market value, their reputation, and their identity. In addition to the chaos that this created in the U.S. market, the 14,000 employees that Bear Stearns employs face job cuts. It has become difficult to know whom and what to blame, I believe that this drove people to get frightened and anxious since they don’t know what to expect now, thus making them less willing to invest and more inclined to save, as a result creating a down spiral in the U.S. job market. I believe that right now is the most difficult time to get a job in the finance industry. This is due to the unemployment and also to the economy’s recession. As a result there have been massive layoffs in large companies so some people are wondering where are they going to go and what is going to happen.

The majority of the employees and investors felt like they were robbed and now there is no one to blame. They are putting all their hopes to Joseph Lewis, which owns 8% of the bank and is trying to block the buyout from JPMorgan. But since JPMorgan is being backed up the fed, I believe that Lewis is going to have a hard and challenging time in order to the stop this buyout. The fed supplied JPMorgan to purchase Bear Stearns and I think it was the smartest move because I believe if that didn’t occurred, then the stock markets would have gotten very hurt and it would also contributed to the US economic slowdown

I believe that now is going to be a good time for the corporate counselors since a lot of employees are going to need a venting solutions and also a little bit of guidance. I believe people are going to get worried of their future because the Finance world is layoff a lot of people, so it is getting harder to find a job.