Hossrex, under your "profitable companies can do no wrong" thesis, how do interpret the current mortage crisis?
For example, take Bear Stearns ( http://en.wikipedia.org/wiki/Bear_stearns ):
After all that, Bear Stearns went out of business last week. How is that possible? Were they (a) "run by retarded monkeys", or (b) "misinterpreted", or (c) something else?
For example, take Bear Stearns ( http://en.wikipedia.org/wiki/Bear_stearns ):
As of November 31, 2006, the company had total capital of approximately $66.7 billion and total assets of $350.4 billion. According to the April 2005 issue of Institutional Investor magazine, Bear Stearns was the seventh largest securities firm in terms of total capital.
After all that, Bear Stearns went out of business last week. How is that possible? Were they (a) "run by retarded monkeys", or (b) "misinterpreted", or (c) something else?