Is CNBC To Blame For Bear Sterns' Implosion?

Michael Weiss · 07/01/08 03:57PM

CNBC's rumor-mongering on March 10 about Bear Stearns' liquidity crisis may have ultimate brought down the investment firm. Or so writes Bryan Burrough in the August issue of Vanity Fair, adding that the day was as bad for the integrity of financial journalism as it was for Eliot Spitzer and people with mortgages: "Publicly speculating on a firm's liquidity is akin to shouting 'Fire!!!' in a crowded theater; in catastrophic cases it can trigger panic selling. It risks, in other words, becoming a self-fulfilling prophecy."