The problem with the apparently huge numbers that are being bandied about where Northern Rock and now Bear Stearns are concerned is that they pale into insignificance when compared to what is reported to be an overhang of $415 trillion's worth of derivative contracts in the markets today. As early as 2002 Warren Buffet was warning of the dangers they presented when this volume was a lot lower, so why is it that the Fed, the Bank of England and other regulatory bodies throughout the developed world have apparently done nothing about these for so long?

figurewizard, petersfield, hampshire

Have you been borrowing someone else's money to bet on people borrowing money?

Has someone else been borrowing someone else's money to bet on your bet?

Does everybody want their money back now?

Why not consolidate all your bad decisions into one giant mistake!
(...and hand your children the bill)

Albert Hall, Blackburn, Lancashire, UK

This crisis is manmade not market made.

Market forces are not to blame as this situation has been caused by charlatans masquerading as professionals in the financial industry.

The super whizzo financial schemes were concocted and then traded between each other seemingly with zero risk assessments and or due diligence have created the biggest pyramid scam in history.

I haven’t noticed any major political event, cultural shift, war or any other event that has led to this situation, all I see is huge mess caused by seemingly unregulated renegades thinking they were all so clever when the truth is the architects of these events should be getting hounded by their governments and to cap it all, the fed and others are helping them with taxpayers money.

Plus the majority of the perpetrators of these schemes are still working in the sector. untouched and free of the responsibility for this mess and free of personal debt whilse thier "clients" are in misery.

John McDonald, Glasgow, U.K.

The fall of Bear Stearns is the financial services equivalent of the fall of Eliot Spizer.

Even if the rescue package can keep it afloat its global reputation has been tarnished. Eliot resigned but in Bear Stearns case the public spotlight will continue to shine on the intricacies of the operations of the financial system causing the industry further public embarassment.

The savings of the public is tied up in the web of the financial services system and this puts the public in a position similar to Mrs. Spitzer of standing by 'their man' when they may prefer to give him a big slap in the face.

Gregory, Tunbridge Wells, Kent

And for those who wonder where the money went: http://www.deepcapturethemovie.com/

About 20 years of FTDs need burying.

Dion Per Sona, Cardiff, UK,

Has Joe Lewis lost so much money on Bear Stearns ?

Maybe Carlyle should ask its illustrious board to stump up some hard cash rather than ask for socialisation of losses.

Capitalism in the US is becoming Crony Capitalism

Maybe Receivers should sue to return of bonuses paid to bankers ?

TomTom, Leeds, England

The concern here could be that although the American mortgage crisis and hedge fund lending may have scared counterparties and investors, risk scrutiny could now shift to other aspects of investment banking which may not be widely understood, and sometimes lack transparency.

These could include the burgeoning global markets in derivatives, such as the options (including proprietary, 'desk' options) and futures which may now underpin the share prices of some global companies.

Typically, a relatively small payment can buy rights for a limited period to much larger assets, which can be renewed on expiry.

Although these instruments add stability to share prices, facilitate short term trading of pricing discrepancies and help in averting panics by providing liquidity, deleveraging the sector in an orderly way as part of wider credit contraction could be no simple matter.

dr venables preller, Warminster, UK

This Bear Sterns failure is just first of a long list to come in a category that until now has managed to keep its troubles secret. The way to resolve the primary cause of our current crisis (money supply) is actually quite simple. But, it is the solution that must never be mentioned or discussed; taking the Private Banks out of the money creation and distribution scenario as in, "Close The Fed". 5 Presidents including Lincoln and Jackson used this solution and immediately solved the financial crisis of their eras, paid off the national debt in 3 years or so, and in some epochs, did away with income tax!
The USA has so much natural wealth and HARD workers that if there is a fairer distribution of the money supply by placing it in the hands of the Treasury Department (one of our Constitutional Rights), not a single citizen ever need be the financial slave of a bank again. I suggest you see the internet film on Google, "The Money Masters." where all is explained in detail.

victor compton, Cherbourg, France