Where Were You When Bear Stearns Collapsed?

Ten years ago – on March 13, 2008 – prestigious Bear Stearns securities firm went bust.
The 85-year old Bear Stearns had been named the seventh largest securities firm in terms of total capital just three years earlier.

Depending on your generation there is a different defining "Where were you question."

These include:

  • Where were you when Princess Diana died?
  • Where were you when President Obama won?
  • Where were you when John Lennon died?
  • Where were you when Magic Johnson announced he had HIV?
  • Where were you when 9/11 hit?
Okay, maybe most of you don't remember the day that Bear Stearns collapsed. Unless you worked in finance, that day didn't mean a whole lot to the general public. Very soon, it became much more significant. That day marked the beginning of the 2008 Global Financial Crisis.

Global Crisis Stats
  • Ten years ago, the U.S. stock market plummeted over 50%. From its peak at 1576 in October 2007, the S&P 500 crashed to a low at 666 in March 2009, marking a 57% decline.  
  • In the U.S, nine million jobs were lost.
  • In the U.S. eight million homes were foreclosed.    
History Repeats

Maybe you were still in high school or college when Bear Stearns collapsed and this all seems like distant history. But, here's why you should care. History repeats itself. Now, I'm not saying that another global financial crisis is just around the corner. But, truly you never know.
From the Tulip Bulb Mania in Holland in the 1700s to the Dot.com stock bust in the U.S. in 2000, history is littered with crises. Another crisis will hit some day. Don't take my word for it. Recently, Bill Gates, the founder of Microsoft and the second richest man in the world said just that: We will have another financial crisis like the one in 2008. It's a certainty.

What Can You Do?

There's a lot that is probably out of your control. That includes things like: What types of exotic investments Wall Street bankers invent and invest in. What the Federal Reserve will do when it meets next week. Will North Korea go rogue and start a nuclear conflict? These are all $64,000 questions.

Smart Money Moves You Can Control

What you can do is focus on what you can control. When it comes to your personal finances there are lots of smart money moves you can make that are totally within your control. Here's just a few:
  1. Beef up your emergency fund. Build up a liquid account with at least three to six months of living expense. That can help you in case of an unexpected job loss or if you need to make a car repair.
  2. Pay down and/or avoid high interest debt. There's "good debt and "bad" debt. Good debt is generally considered debt that will help advance your financial life down the road that can include student loan debt, mortgage debt or even a business loan. Bad debt is typically considered to be high-interest credit card debt.
  3. Take control of your financial investments. Yes, that means you can trade for yourself. Even if you don't have a background in the stock market, technological advancements in recent years have leveled the playing field between the institutional and retail investor (that's you). That means you have access to the same types of information, real-time stock quotes and charting software as the pros, often times for free.
Rely on Trading To Increase Your Income

I founded my company SheCanTrade to teach investors, just like you, a simple and easy-to-understand approach to trading in the stock market. This week's 10th anniversary of the implosion of Bear Stearns shows the pros don't always know what they are doing. In fact, the more complicated they make it – creating complicated and exotic derivatives products that only PhDs could understand that created a dangerous bubble that exploded. That hurt millions of Americans for many years after the 2008 crash.
  • When you learn how to trade options, you can make money in both rising (bull) markets and falling (bear) markets.
  • With options, you define your risk before you enter the trade. You may have unlimited upside potential, but you can know ahead of time exactly how much you can lose.
  • By keeping your risk low and your losses to a minimum, you can put the odds on your side to generate a steady stream of income.
While for now, there are no economic crises on the horizon, the 10th anniversary of the collapse of Bear Stearns is a good reminder that you never know what may lie around the corner. You can't always count on the professionals. At the end of the day, wouldn't you rather be the own master of your financial universe?
No matter your level of trading experience from "I don't know what selling short means" to "I'm an experienced trader," I can help show you new strategies that can help increase your monthly income.

Join Me On A New Trading Journey Today
Come trade with me today.

 Share This
Return to Blog