I'm still freakin stunned than many of us little guys trading at home in our underwear foresaw something like this happening years ago, yet "they" didn't.
We could have had a nice little recession in 2002-2004 and be growing nicely out of it now. But instead, we are now looking down the barrel of something extraordinarily serious... yet the Fed continues the actions that brought us here.
We seriously need revolution.
"Obama, Obama, Obama" - how revolutionary would it be to have the first black Prez in history?
Oh, and I hope you change your undies dailly, wayneL !! LOL
"Obama, Obama, Obama" - how revolutionary would it be to have the first black Prez in history?
Oh, and I hope you change your undies dailly, wayneL !! LOL
The US had it's chance for real change with Ron Paul but predictably they choose not to deal with reality and continue to prop a system that quite clearly doesn't work.
It seems Bear Stearns has been put in the 'TOO BIG TO FAIL CAMP'. I wonder how many more will fall into that camp in the coming months as the good ol U.S.A (United Socialists of America) continue their policy of privatizing the profits and socializing the losses?
ahahahah that was funnyI guess it all comes down to "how deep are the Fed's pockets"?
If they get stuck, maybe they could sell some of that mountain of gold bricks they have stashed away in Fort Knox to raise some cash to bail out their high finance buddies, thus pushing gold down and boosting the greenback in the process? LOL
Anythings possible now, ain't it?
AJ
Wow, i didnt read about this until just then. Quite scary, and highly stupid of the Fed
Perhaps ASF members should pool some funds together and put in a bid ...
"Obama, Obama, Obama" - how revolutionary would it be to have the first black Prez in history?
Oh, and I hope you change your undies dailly, wayneL !! LOL
March 16 (Bloomberg) -- JPMorgan Chase & Co. agreed to buy Bear Stearns Cos. for about $2 a share after a run on the company ended 85 years of independence for Wall Street's fifth- largest securities firm and prompted a bailout by the Federal Reserve.
The central bank will fund as much as $30 billion of Bear Stearns's ``less-liquid assets,'' the two companies said in a statement today. The deal values New York-based Bear Stearns, with 14,000 employees, about $270 million, far less than the $4 billion market value on March 14. The stock had fallen 80 percent in the past 12 months.
http://www.bloomberg.com/apps/news?pid=20601103&sid=ar0QxIGdOnWI&refer=news
Amazing.
Am i gunna be able to get a job when i graduate...?
Imagine how the people who purchased the stock on Friday feel.....
An instant 93% loss on investment..... ouch......
Cheers
Sunday Times..UK.., Joe Lewis, the 71-year-old currency trading tycoon, has lost close to 800 MLN USD in the collapse of the stock price of Bear Stearns, as he owns nearly 10% of the investment bank"s shares that he bought when the price was above 100 USD. Bear Stearns closed on Friday around 27 USD. The Times States that the huge paper losses could force Lewis to sell out of some of his other positions in order to meet margin calls from his lending banks.
$2 is not a fair value for Bear Stearns, Their plaza in Manhattan is worth more than $1B. I don't know, what is the benefit of going so cheap . The deal was supposed to be around $20 not $2.
http://money.cnn.com/2008/03/16/news/companies/jpmorgan_bear_stearns/?postversion=2008031618
Well, now I know that in this volatile world it is best to stay away from financials even if they seem extremely cheap...
As of November 30, 2007 and 2006, the Company had notional/contract amounts of approximately $13.40 trillion and $8.74 trillion, respectively, of derivative financial instruments, of which $1.85 trillion and $1.25 trillion, respectively, were listed futures and option contracts.
The aggregate notional/contract value of derivative contracts is a reflection of the level of activity and does not represent the amounts that are recorded in the Consolidated Statements of Financial Condition. The Company's derivative financial instruments outstanding, which either are used to offset trading positions, modify the interest rate characteristics of its long- and short-term debt, or are part of its derivative dealer activities, are marked to fair value.
The Company's derivatives had a notional weighted average maturity of approximately 4.2 years at November 30, 2007 and 4.1 years at November 30, 2006. The maturities of notional/contract amounts outstanding for derivative financial instruments as of November 30, 2007 were as follows:
I found the Bear Stearns "smoking gun"
It took a little digging, but I found it.
The real reason why the Fed panicked and, through Pigman JPM, bailed out Bear Stearns in the first such action since the previous Great Depression.
And here it is:
No matter how far down they bury it, it is still smoking.
That link is to their 2007 SEC 10k filing. Tucked away, well out of view on page 80, is the cold, hard truth as to why they were saved, and will be absorbed--amoeba like--into the belly of JPM.
Are you ready to hear the reason?
Can you handle it?
Are you sure?
Okay, here goes.
Bear Stearns has outstanding derivatives positions with counterparties totalling:
Thirteen trillion dollars.
That's right. Thirteen trillion.
Trillion.
With a "T".
No wonder they couldn't be allowed to fail.
And no wonder that JPM is being chosen to bail out Bear. Not because, as stated, JPM "clears Bear's trades" (which seems odd since Bear claims to be a clearing agent itself), but rather because JPM is already the largest derivatives house (with about $70 trillion or so in positions at last count) and acts as the bagman for the Fed/feds financial shenanigans.
So, now we know the truth. That truth being that we just came within a whisker of a complete, worldwide, systemic, financial derivatives meltdown.
Today.
It's just that simple.
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