Alan Schwartz on speculation and rumor as the cause of the fall of Bear Stearns

During the week of March 10th, 2008, unfounded rumors and attendant speculation began circulating that Bear Stearns was in the midst of a liquidity crisis. Due to the stressed condition of the credit market as a whole and the unprecedented speed at which rumors and speculation travel and echo through the modern financial media environment, the rumors and speculation continued throughout the week. The rumors thus became a self-fulfilling prophecy and there was, simply put, a run on the bank.

~Alan Schwartz, former CEO, Bear Stearns, opening remarks of testimony given to the Financial Crisis Iniquiry Commission, May 5th, 2010