Epic Fail is Epic

On "The Daily Show" last night they covered the epic failure of Bear Stearns, an investment bank, as well as the monstrous bad advice from some financial talking head on TV, telling somebody who wrote in that the company was fine and that a pullout from them was ill-advised. Anybody who happened to short-sell Bear Stearns over the weekend just about doubled their money, as it fell well over $50 from $60, crashing horrifically.

I didn't short-sell them. I don't do much with the market. However, I did get thinking a bit, and I do have an e-trade account. I hopped on, threw a few dollars in it this morning, and I've already made about $20 in the hour that the market has been open. I figure if it's high-risk, as they could crash completely, but even if they go from five dollars per share (my buying price, approx.) to one per share, I'm holding fifty shares and lost $200, and they've nowhere to go but up or complete failure. Also, at fifty shares, every penny upwards if $0.50 for me. What's more, they are going to do everything they can to try to get their stock up higher.

There is always the risk of the company dissolving, at which point I lose my $250, but that's why the market is a risk. Furthermore, I got in the morning after Jon Stewart told my generation that Bear Stearns is at a historic low - with any amount of luck, lots of people will be buying in later today, pushing up the price. If I'm very lucky, I could double my money in a month, maybe even more. Imagine if the stock ever recovers, back up to say, 50 - that's multiplying my money by 10! That could be within a year or so.

Basically, their failure is my bread and butter.

TRH