Wall Street Addict

Bear Stearns may have to bail out a second hedge fund that made bad bets on securities backed by subprime mortgages, according to a Morgan Stanley analyst. Bear's hedge fund troubles have already sent its stock down 9 percent since mid-June, and investors fear it's situation will worsen if the subprime mortgage market declines further. U.S. trading was volatile Monday as investors worried about the possibility of market fallout should the two Bear Stearns hedge funds collapse, although U.S. stock index futures edged higher this morning. Homebuilder Lennar reported a $244 million quarterly loss, and said the housing market could still get worse. Published by Harold Maass

Labels: BSC, Subprime Mortgages