Comments on: Bear Stearns a Lesson in Rumor Monitoring http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html Internet Marketing News Fri, 10 Feb 2012 17:00:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: » Information Cascade – Impact of Rumors on Wall Street » Cornell Info 204 - Networks http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-44384 » Information Cascade – Impact of Rumors on Wall Street » Cornell Info 204 - Networks Mon, 31 Mar 2008 21:25:23 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-44384 [...] http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html [...] [...] http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor -monitoring.html [...]

]]> By: Nathania Johnson http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-43800 Nathania Johnson Thu, 20 Mar 2008 19:10:46 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-43800 I'm willing to be convinced, but I'd rather see hard numbers. For me, going from 0% to 0.08% is not a real spike. It reminds me of charts that people like to use in showing how much foreclosures on subprimes have increased. Yes, you can make it look like a spike, but when you compare it to mortgages that are being paid, it's a foothill, not Mount Everest. I think a lot of market moves are exaggerated. The Fed shouldn't have bailed BS out. And BS shouldn't have been downgraded as much as it was. I’m willing to be convinced, but I’d rather see hard numbers. For me, going from 0% to 0.08% is not a real spike. It reminds me of charts that people like to use in showing how much foreclosures on subprimes have increased.

Yes, you can make it look like a spike, but when you compare it to mortgages that are being paid, it’s a foothill, not Mount Everest.

I think a lot of market moves are exaggerated. The Fed shouldn’t have bailed BS out. And BS shouldn’t have been downgraded as much as it was.

]]> By: Andy Beal http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-43799 Andy Beal Thu, 20 Mar 2008 18:54:15 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-43799 @Nathania - I don't believe the conference is the reason for the increased blog chatter. A search for "bear stearns stock" shows a sharp increase: http://www.blogpulse.com/trend?query1=bear+stearns+stock&label1=&query2=&label2=&query3=&label3=&days=60&x=0&y=0 @Luke - well, Bear Stearns was headed for a fall, so it's not like the rumors weren't true. That said, they could have been more transparent in their communication. A couple of sound bites on CNBC is hardly a transparent way to address the concerns and rumors circulating in blogs and social media. The exact strategy I would have used? Can't say, as I don't have access to the inside information from the company, but better communication with stakeholders might have given them some breathing room to negotiate a better deal than $2 a share. :-) @Nathania – I don’t believe the conference is the reason for the increased blog chatter. A search for “bear stearns stock” shows a sharp increase: http://www.blogpulse.com/trend?query1=bear+stearns+stock&label1=&query 2=&label2=&query3=&label3=&days=60&x=0&y=0

@Luke – well, Bear Stearns was headed for a fall, so it’s not like the rumors weren’t true. That said, they could have been more transparent in their communication. A couple of sound bites on CNBC is hardly a transparent way to address the concerns and rumors circulating in blogs and social media.

The exact strategy I would have used? Can’t say, as I don’t have access to the inside information from the company, but better communication with stakeholders might have given them some breathing room to negotiate a better deal than $2 a share. :-)

]]> By: Recession Watch » Blog Archive » Hints and Allegations, and Bear Stearns http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-43796 Recession Watch » Blog Archive » Hints and Allegations, and Bear Stearns Thu, 20 Mar 2008 17:35:44 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-43796 [...] There is speculation that the bets against Bear Stearns — and the pulling of credit lines — escalated after Alan Schwartz, CEO, went on television to say the firm’s liquidity position was fine. But the market was churning in the other direction. “One of Bears’ key mistakes may have been to ignore the rumors for too long. By the time the CEO appeared on TV, it was too little, too late,” writes Marketing Pilgrim’s Andy Beal. [...] [...] There is speculation that the bets against Bear Stearns — and the pulling of credit lines — escalated after Alan Schwartz, CEO, went on television to say the firm’s liquidity position was fine. But the market was churning in the other direction. “One of Bears’ key mistakes may have been to ignore the rumors for too long. By the time the CEO appeared on TV, it was too little, too late,” writes Marketing Pilgrim’s Andy Beal. [...]

]]> By: MarketBeat Blog - WSJ.com : Hints and Allegations, and Bear Stearns http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-43788 MarketBeat Blog - WSJ.com : Hints and Allegations, and Bear Stearns Thu, 20 Mar 2008 14:31:08 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-43788 [...] the rumors for too long. By the time the CEO appeared on TV, it was too little, too late,” writes Marketing Pilgrim’s Andy Beal. Permalink | Trackback URL: [...] [...] the rumors for too long. By the time the CEO appeared on TV, it was too little, too late,” writes Marketing Pilgrim’s Andy Beal. Permalink | Trackback URL: [...]

]]> By: Search Engine Optimization Journal http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-43787 Search Engine Optimization Journal Thu, 20 Mar 2008 14:18:06 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-43787 Agreeing with others, we think all they could have unfortunately done was watch the rumors flow and scramble quickly to try to do something. With such a big and quick fall, it is hard to strategically formulate some sort of plan. Perhaps easier said than done? Either way, it's a shame. Agreeing with others, we think all they could have unfortunately done was watch the rumors flow and scramble quickly to try to do something. With such a big and quick fall, it is hard to strategically formulate some sort of plan. Perhaps easier said than done? Either way, it’s a shame.

]]> By: Nathania Johnson http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-43783 Nathania Johnson Thu, 20 Mar 2008 12:12:12 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-43783 Bear Stearns hosted a conference in Florida last week, so I think that's why you see an increase in conversations about the company leading up to the fall. BS's problems had to do with their business actions (the risky way they were buying up loans), and I don't think there's much they could do to stop the trainwreck. Bear Stearns hosted a conference in Florida last week, so I think that’s why you see an increase in conversations about the company leading up to the fall.

BS’s problems had to do with their business actions (the risky way they were buying up loans), and I don’t think there’s much they could do to stop the trainwreck.

]]> By: Luke Faccini http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-43778 Luke Faccini Thu, 20 Mar 2008 10:34:04 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-43778 Hey Andy, very thought provoking. What do you think they could have done in such a short time? Hey Andy, very thought provoking. What do you think they could have done in such a short time?

]]> By: Andy Beal http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-43772 Andy Beal Thu, 20 Mar 2008 06:05:47 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-43772 It was fast, but they there was much they could have done to control the flow of news. I guess all news online moves faster than mainstream media. It was fast, but they there was much they could have done to control the flow of news. I guess all news online moves faster than mainstream media.

]]> By: Jaan Kanellis http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html/comment-page-1#comment-43771 Jaan Kanellis Thu, 20 Mar 2008 04:28:50 +0000 http://www.marketingpilgrim.com/2008/03/bear-stearns-a-lesson-in-rumor-monitoring.html#comment-43771 I see the point your trying to make here Andy, but the fall of bear Sterns was fast, fast as the Technorati chart shows. Many blogs posted quickly on the core news of the collapse. Doubt their was much lead-up in the blogsphere before that. Sure they could have at least lead the conversation to help curb the collapse and control the news better, which is really the essence of reputation management. I see the point your trying to make here Andy, but the fall of bear Sterns was fast, fast as the Technorati chart shows. Many blogs posted quickly on the core news of the collapse. Doubt their was much lead-up in the blogsphere before that. Sure they could have at least lead the conversation to help curb the collapse and control the news better, which is really the essence of reputation management.

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