Academic

I know we are trying to move on, but I have heard several news sources and commentators point out that Bear Stearns employees own some 1/3 of the company's stock.  That number seems striking and a bit surprising, particularly given all of the hoopla surrounding Enron and the fact that its employees held so much of the company's stock when it collapsed.  Indeed, I thought one important lesson from Enron, at least for employees, was to diversify.  Apparently not.  To be sure, there are many good reasons to invest in your company's stock.  Then too, a short while ago Bear Stearns did not appear like it was heading for disaster (but then again neither did Enron).  Moreover, it is not clear that Bear Stearns employees have not diversified and hence perhaps there are employees who did not have their entire nest egg in the Bear Stearns basket.   Unfortunately, it seems more likely that employees have once again found themselves in a situation in which they not only face potential job loss, but also the loss of their retirement.