Bear Stearns

I was talking to a friend of mine who is an investor and studies markets 4 to 8 hours a day 5 or 6 days a week. He was saying one of the reasons Bear Stearn collapsed is that when their two hedge funds collapsed the average investor in those hedge funds felt abused directly by Bear Stearns. Since investors in Hedge funds tend to be extremely rich there was an element of payback in what happened to Bear Stearns recently. In other words "what goes around comes around". If this is true this may be an object lesson for all other investment banks connected to hedge funds.