Comments on: Information Cascade – Impact of Rumors on Wall Street http://expertvoices.nsdl.org/cornell-info204/2008/03/31/information-cascade-%e2%80%93-impact-of-rumors-on-wall-street/ This is a supplemental blog for a course which will cover how the social, technological, and natural worlds are connected, and how the study of networks sheds light on these connections. Sun, 22 Nov 2009 12:25:18 +0000 http://wordpress.org/?v=2.3.3 By: Nicholas Radice http://expertvoices.nsdl.org/cornell-info204/2008/03/31/information-cascade-%e2%80%93-impact-of-rumors-on-wall-street/#comment-1039 Nicholas Radice Wed, 16 Apr 2008 16:47:49 +0000 http://expertvoices.nsdl.org/cornell-info204/2008/03/31/information-cascade-%e2%80%93-impact-of-rumors-on-wall-street/#comment-1039 Or maybe a glance at Bear Stearns' November balance sheet -- observing that a $10.5 billion sliver of tangible common equity supported $366 billion in other assets -- had a little more to do with Bear's collapse than mere "rumors." With that kind of leverage and surging prices of credit default swaps on Bear, would you do business with them? It was a classic run on the bank... Or maybe a glance at Bear Stearns’ November balance sheet — observing that a $10.5 billion sliver of tangible common equity supported $366 billion in other assets — had a little more to do with Bear’s collapse than mere “rumors.” With that kind of leverage and surging prices of credit default swaps on Bear, would you do business with them?

It was a classic run on the bank…

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