Bear Sterns $2 a share?

A year ago this investment bank was worth $150 a share. Hahaha, JP Morgan Chase is bailing them out and I expect before this year is up there will be many worse happenings. When I first started talking about this years ago I didn't know how long it would take to get here, but it's slowly getting here.

Of course Joe blames it on the democrats, but whatever.

 

It's the Illuminati's fault. Last time I was over on Jackle Island with Heckle, Jeckle, GHB, GWB, and the Bildenbergs we were all talking about it. a windfall for us and we are just happy as a tick on a hound.

Woot woot!!!!!

Muhuauaua!!!

 

http://finance.yahoo.com/q?s=%5EDJI

And some one will make a real killing off of Bear Sterns.

 

Make money!? They're in over their ears in bad debt. JP Morgan is taking on a burden by buying them out.

This is not a classic bailout where money was just pushed over to Bear Stearns to keep it going. Bear is no more and is now the burden of JP Morgan who after a night of arm twisting was compelled to take on the failed institution. I'm sure JP Morgan initially balked at the idea but if they had not taken on Bear you would have awaken this morning to a bank holiday. Billions in Federal Money will be forked over to cover bad debts, once again removing the moral hazard, the risk and the potential for losses that any healthy free market needs. Technically what the Fed is doing is not literally printing money but swapping its Treasury paper for bad debts. Despite what financial pundits say, this is essentially the same thing as the only thing today backing our dollar is that paper. The foreigners who hold it billions and billions of dollars of it are watching it be diluted by the Feds actions trading it for what is essentially toxic waste that no one wants on their books. Some pundits have said that this is what the Fed is for. I could not disagree more.

The Fed was designed to prop up Banks not financial speculators like Bear Sterns, which is why it took a full vote of all the Fed Governors to do this non-bailout bailout. Bear is not a bank, it is a financial speculator (an investment bank not a commercial lender) and is not regulated by the Federal Reserve as your typical bank is. The Fed by law cannot lend directly to an investment bank. Enter in JP Morgan and the offer they couldn't refuse.

 

I see the Hotel California effect is still in action. Welcome back.

 

I do miss this place sometimes... sometimes...

 

Does your therapist know your back on Fugly again?

If not make sure you bring it up in the next session.