Someone asked me tonight to write about Bear Stearns and the ripples – the behaviors, the consequences. This was the 4th person asking for perspective on Bear Stearns.
Bear Stearns situation is probably an intervening variable, not primarily an event generating more behavior.
The news of Bear Stearns serves as a reinforcer for those in investment or looking to large investors as guidance. It serves as a consequence for those spending their money with them…
For most of us it is yet another data point jumbled in with the more real costs of gas, milk, produce, and pretty much everything else.
People responding to the economic issues for the first time based on Bear Stearns “sign of the times” type news likely have a less hand to mouth experience with our economy. No judgment in that, just that it takes consequences at all spectrums to raise awareness of the total breakdown of the economy.