Bear Stearns and Lehman Brothers Response

The near failure of the Bear Stearns and Lehman Brothers harmed the money market. The market faced a crisis of confidence as potential investors got scared of the market and were not willing to invest anymore. Further, financial institutions such as banks put stringent measures on the investors before advancing funds that were beyond the reach of the majority. Thus, the lenders stopped lending since they feared they will lose their money. This eliminated the desire for a mortgage in the market as the value of properties fell as the Bear Stearns were waiting for government bailout and the Lehman brothers failed to benefit from government and private investors bailout leading to eventual collapse (Kensil, & Margraf, 2012). Therefore, most individual investors lost their investment in properties and savings as the lenders auctioned their assets and used the savings held in banks to clear the outstanding interest on a mortgage. The Federal Reserve and Treasury department bailed out the Bear Stearns to keep it afloat and kept a watch on the Lehman brothers expecting the market to offer amicable solutions to its failing business. This resulted in the eventual collapse of the Lehman brothers.

Peer Response

Good Morning Sabrina. Your response to the issues raised in the questions was well thought. Your articulation of what was ailing the Bear Stearns and Lehman Brothers was great since you gave a clear explanation that touched on the failures of the market and the government role in the bailout of Bear Stearns (Mieszala, 2019). The market indeed lost confidence in bailing out the Lehman Brothers in contrast to the government expectations. Further, the bailout of Bear Stearns saved the mortgage market a great deal.


Kensil, S., & Margraf, K. (2012). The advantage of failing first: Bear Stearns v. Lehman Brothers. Journal of Applied Finance (Formerly Financial Practice and Education)22(2).

Mieszala, R. (2019). Impact of the collapse of the Lehman Brothers bank and the 2008 financial crisis on global economic security. Scientific Journal of the Military University of Land Forces51.

Essay Tutors
Calculate your paper price
Pages (550 words)
Approximate price: -

Why You Should Choose Us

Affordable Prices

Since we know that we are dealing with students, either part time or full time, many might be having financial constraints, but still want to pursue academic life. This has made us ensure we have very affordable prices, and wonderful discounts, yet give high quality products.

Professional Writers

Our reputation has been built because of the dedicated and highly qualified writers in our team. The writers give clients high quality products which guarantees return clients and referrals.


Our team is dedicated to giving clients the best quality products. However, if a paper does not meet the requirements stated by the client, our team will provide free revisions to the satisfaction of the client.

Moneyback guarantee policy

We believe that clients should get value for their money. If the client finds that the product has not met the requirements stated, we will refund the amount paid.

Original papers

We understand how plagiarism can ruin clients’ careers and reputation. We thus strive to provide original papers to our clients. We use several tools to check plagiarism. This ensures that clients get products that meet their institutions’ standards.

24/7 Customer Support

You can reach our support team via, live chat, email or phone. All your issues will be dealt with asap as the team works round the clock.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You have other errands to run? No need to worry. Place your order with us, carry out your errands while we do your paper and deliver on time.

Blog Writing

Give us a topic you want your blog based on, and let our team handle the rest. You will get the best article to be published in any forum you want. We have able team to do all the work for you.


Many students are given assignments by their tutors. However, students find it challenging to just even come up with a topic. This should no longer be a problem to you. Just visit our site, contact the support team that will help you place your order, and find the best writer to handle the assignment.

Dissertation Services

Dissertation has proven to be challenging to most students. For this reason, we have specialized writers who handles only these kind of papers. You will be in constant touch with the writer and the support team once you place a dissertation order to make sure nothing goes wrong.

Editing and Proofreading

Some students have good points and writing prowess. However, they make minor mistakes that deny them good grades. To avoid such cases, you can give us your already written paper so that our team can edit it to the correct formatting style, language, proper flow and the correct academic language. This gives you an upper hand to get the best grade than a person whose job has not been edited.