So what now, I have been asked. You can be sure I am asking myself the same question all the time -- what now? The failure of Bear Stearns to remedy its liquidity situation, understand the risks that put it in that situation, disclose the seriousness of the situation and leave investors open to speculation and fear by a lack of transparency creates a lot of doubt about whether Newcastle could be following this same path. I do not have an answer for that. The truth is that I don't know.

A few things I do know:

• Management disclosed at its recent conference call that the company had raised cash on hand to over $100 million and now hopes to increase its reserves more by reducing the dividend. At the current share price, the capitalization of the company stands $467 million. If the cash reserves equate to 20% to 25% of total equity, you would think the company should be sustainable. Unless the mention Friday of share buybacks was a deception, the company seems to have confidence in its survival and even higher share value.
• The dividend yield was attractive before and at 11% it is still relatively attractive.
• Commercial, industrial and retail real estate have not seen falling prices that would compare to the residential market. In the absence of specific news about NCT's loans failing, it seems to have been pulverized by circumstances. Call it being in the wrong place at the wrong time.
• I believe the financial markets that have lead to the tightening of credit and the halting of CMBS loans due to the acceptance of undue risk have probably not run their course but they have progressed to the point where any pretending that things are not that bad has stopped, and capitulation has arrived in most quarters, if not everywhere. Hopefully, we have seen the worst.

Newcastle shareholders and those of other companies in turmoil eventually must decide to buy, sell or hold onto their positions. I have sold positions in some of my financial stocks and held onto others. I certainly placed too much faith in Bear Sterns, which may turn out to be my biggest mistake of the year and I hope NCT does not duplicate it. However, I'm holding onto the shares in multiple portfolios.

I have fully disclosed my trading activity and stock ownership during my tenure on BloggingStocks, sometimes with pride, and in the case of BSC and a few others with great pain.

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm. He writes Chasing Value and Serious Money columns. Disclosure: I own shares of NCT and I guess the former BSC, perhaps now JPM.