>> The Federal Reserve responded swiftly to pleas from Bear Stearns that its coffers had “significantly deteriorated” within a 24-hour period
Say... yathink that’ll work if WE try it? My coffers could use a little topping off...
“Dear Ben,
How are you? Wife and kids OK? Swell GQ beard thing you got going!
Say, Ben, I was wondering if you could float me some of that free Federal money...
...”
It’s a spiral. People fear a company is in trouble and do the wall street equivalent of a “run on the bank” and then the company really IS in trouble even if it isn’t. Now, Bear really was in trouble, but recent unrelated events haven’t helped much.