Bear Stearns bought out for $2/share !!!!

[faceking]

Oh my lordy!!!!

Bear Stearns bought by JP Morgan at the rock bottom price of $2/share. Man that company was done for, if they are only get $2/share.

this was an $80 stock a week or two ago.

Wow, wow, and wow. BSC: Basic Chart for BEAR STEARNS COS THE - Yahoo! Finance

 

[simcha]

Hey, just listen to George... Our economy is fine. Nothing to see here. Move on...

 

[transformer_99]

More to come, it's the bailouts we all will have to endure for the Bush economy.

 

[Northland]

Things happen. Yet another proof that it is unwise to place money in the hands of overpaid twentyish twits. The stock market has always been a questionable, and those towards the top are absurdly (even obscenely) overpaid-how can anyone be surprised by this turn of events?

 

[alex8.5]

I prefer to take care of my own investments. I would never invest with such companies, they are just to volatile, and I have quadrupled my net worth by doing this myself, because I care more. It is my own money..

 

[Elmer Gantry]

No one will care more about your wealth than yourself.

Talk about going from a rooster to a feather duster. This won't be the last one yet, either. How many squillions in stock market value has been written off in the last couple of months?

 

[B_Lightkeeper]

Hey, just listen to George... Our economy is fine. Nothing to see here. Move on...

Yeah, but he doesn't have to worry. He probably makes enough off of oil to keep him more than comfortable for the rest of his life.

 

[SpeedoGuy]

Given the independent cowboy culture at Bear Stearns that celebrated risk taking as well as opposing assistance to other banks in trouble, why are such hyper capitalists now being given help by the...gasp!...federal government to avoid bankruptcy? Shouldn't the cowboys have to face the full consequences of their bad decisions?

 

[Hockeytiger]

Given the independent cowboy culture at Bear Stearns that celebrated risk taking as well as opposing assistance to other banks in trouble, why are such hyper capitalists now being given help by the...gasp!...federal government to avoid bankruptcy? Shouldn't the cowboys have to face the full consequences of their bad decisions?

Frankly, that is a very fair question. I wondered the same thing.

If market efficiency is our sole concern then letting them and the investors who accepted such foolish risks "lump it" would be the wisest choice. Rational investors would learn the harsh lessons and would refuse to conduct business that way again. The fallout would be very ugly (panic stricken) in the short term, but the economy would recover, even without governmental intervention (probably even quicker without governmental intervention). However, many "ordinary" folk could be hit pretty hard and there I guess lies the issue.

Right or wrong the US is a democracy not a plutocracy and thus there are greater concerns than market efficiency. It looks like the Fed is trying to soothe fears and prevent panic by doing so. It certainly is economically inefficient to do so, but perhaps it is wise public policy. Though I am no PhD holding economist.

 

[B_Nick4444]

Jamie Dimon is the man!

 

[SpeedoGuy]

Right or wrong the US is a democracy not a plutocracy and thus there are greater concerns than market efficiency. It looks like the Fed is trying to soothe fears and prevent panic by doing so. It certainly is economically inefficient to do so, but perhaps it is wise public policy. Though I am no PhD holding economist.

That sounds reasonable to me. Snarkiness aside, I also realize that the main goal of the Fed here seems not to be to rescue a pack of gamblers from the consequences of their own addiction but to quell a potential stampede that could undermine everyone's overall stability.

In truth, its not necessarily government bailouts that gall me, its the hypocrisy of so many investors who always say that the best assistance government can provide is to get out of the way. If that's so, then it ought to apply in all cases. Markets cannot self-correct, as is claimed, without harsh object lessons.

 

[Hockeytiger]

That sounds reasonable to me. Snarkiness aside, I also realize that the main goal of the Fed here seems not to be to rescue a pack of gamblers from the consequences of their own addiction but to quell a potential stampede that could undermine everyone's overall stability.

In truth, its not necessarily government bailouts that gall me, its the hypocrisy of so many investors who always say that the best assistance government can provide is to get out of the way. If that's so, then it ought to apply in all cases. Markets cannot self-correct, as is claimed, without harsh object lessons.

I have to admit you are absolutely right. The hypocrisy is all too glaring.

Once again I will state, there are a bunch of executives out there who, if there is justice, ought to learn to convincingly say, "Would you like fries with that?"

 

[JustAsking]

That sounds reasonable to me. Snarkiness aside, I also realize that the main goal of the Fed here seems not to be to rescue a pack of gamblers from the consequences of their own addiction but to quell a potential stampede that could undermine everyone's overall stability.

In truth, its not necessarily government bailouts that gall me, its the hypocrisy of so many investors who always say that the best assistance government can provide is to get out of the way. If that's so, then it ought to apply in all cases. Markets cannot self-correct, as is claimed, without harsh object lessons.

That's right, Speedo. What ever happened to the "Free Market" that is supposed to take care of everything. Well, this is what a completely free market is all about. We do need some regulation here and there, because although the relentless greediness of capitalism is a marvelous thing most of the time, it is not always our friend when allowed to completely run unchecked.

 

[Drifterwood]

We have an old saying. If you owe the bank a hundred thousand, they have you by the balls. If you owe them a hundred million, then you have them by the balls. The Feds are clearly caught by the balls.

Banks are allowed to have balance sheet gearing that no other company would sanely be allowed. There seems to have been an abdication of responsibility by the regulators with all this repackaging an off-balance sheet instruments.

To cut to the chase, the big Banks have realised that some in their industry wouldn't merit a credit card. The Banking Industry is effectively now self regulating and the bad companies in the industry are going to be exposed.

I don't work in the industry anymore, but I imagine that those who do have a pretty good idea which companies will be going next.

 

[Jovial]

CNBC's Jim Cramer giving advice on whether to sell Bear Stearns stock last Tuesday:
YouTube - Jim Cramer: "Bear Stearns is Fine!" Tues, 3/11/08

 

[Principessa]

Oh my lordy!!!!

Bear Stearns bought by JP Morgan at the rock bottom price of $2/share. Man that company was done for, if they are only get $2/share.

this was an $80 stock a week or two ago.

Wow, wow, and wow. BSC: Basic Chart for BEAR STEARNS COS THE - Yahoo! Finance

I'm surprised that it sold that low; but I am not surprised by the buy out itself. They have been talking about this for over a month in the WSJ & NYT.

I prefer to take care of my own investments. I would never invest with such companies, they are just to volatile, and I have quadrupled my net worth by doing this myself, because I care more. It is my own money..

Note to self: Hire Alex8.5 to handle finances.