What a story! The blue-eyed boy is in trouble!
There's a high-possibility of 17-March-2007 being the blackest Monday on the bourses worldwide. Bear Stearns is facing a basic issue, it doesn't have money to pay back investors. The long-term outlook for BS is not so bleak, however 17-March & 27-March would be two significant days in the history of this bank.
Back home, India does seem fairly decoupled, except being pulled into the acute liquidity crunch that the world is facing. It may not be a bad time, to relook at some of our own practices. Indian Realty prices have moved more than 3X over 2003 base, which if they havent already, make Indian banks seriously revalue the impact of their housing portfolio. ICICI bank, already reported upto $250m losses in sub-prime related issues. Indian story is good, solid but the termite attack has started, more than anything the FM's "decoupling" theory is gonna be seriously tested soon.
Whatever happens, I sincerely do hope that Bear Stearns rides this uncomfortable times unscathed. Else, lets' be prepared for a worldwide-market blood bath.
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