Investing guide

The collapse of Bear Stearns should not surprise anyone. When things go sour for an investment bank, the damage will be ugly, as we’ve now seen. I’m adjusting my portfolio to reduce my risks.

In yet another example of the central bank’s failed bailout-after-bailout strategy, it’s now on the hook for Bear Stearns’ losses. We need to clarify the Fed governors’ mandate — or even send them packing.

In yet another example of the central bank’s failed bailout-after-bailout strategy, it’s now on the hook for Bear Stearns’ losses. We need to clarify the Fed governors’ mandate — or even send them packing.

Two common indicators — mutual funds’ cash positions and net inflows — won’t tell you much. Most funds remain fully invested, and studying inflows is like using a rearview mirror to see what’s ahead.