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NEW YORK (AP) - Investors following the near-collapse of two hedge funds managed by Bear Stearns Cos. might be a little bit like a homeowner watching the house down the block catch fire.
It is far enough away to think there's no immediate threat — but you still need to care about what the embers could do to your own roof. The worry is the same on Wall Street, where bankers are anxiously watching to see if the hemorrhaging at Bear Stearns will spread elsewhere.
Right now, individual investors are not yet seeing an impact in their 401Ks and stock portfolios. But, the situation might have wider implications as the nation's biggest financial institutions determine if their own hedge funds are at risk — and as U.S. regulators remain on high alert for a contagion that could rattle the economy.
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