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Old 03-16-2008, 09:32 PM   #21
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You mean that $200K I sunk in Bear Stearns Friday wasn't a smart move.
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Old 03-16-2008, 09:35 PM   #22
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It's lookin good. Buy, buy, buy! You can get a ton of shares at $2.
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Old 03-16-2008, 09:38 PM   #23
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Ben has no real worries. He'll be amply rewarded for trying to take care of the banks by plunging rates.

We the people, on the other hand, have got a problem.
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Old 03-16-2008, 09:44 PM   #24
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I think we all need to gather in a circle, hold hands with our eyes closed, and sing "Koom-bye-yah" along with "Stay the Course" chanting.

(Just KIDDING...)
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Old 03-16-2008, 09:57 PM   #25
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No doubt Ben is watching CNBC and ready to pull the "plunger" before the US market opens...I wonder how much pizza and mountain dew he has had this weekend...
They said on Bloomberg that the Fed dropped the rate 25 points 5 minutes after the announcement of the JP Morgan purchase of BSC.
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Old 03-16-2008, 11:10 PM   #26
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They said on Bloomberg that the Fed dropped the rate 25 points 5 minutes after the announcement of the JP Morgan purchase of BSC.
Inflation Inshmlation.

Why worry about about returning to the Carter years when all hell is breaking loose now?

We'll worry about inflation next year when we need to move interest rates back up to 15% to fight that.

Head down and keep moving.
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Old 03-16-2008, 11:19 PM   #27
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I think we all need to gather in a circle, hold hands with our eyes closed, and sing "Koom-bye-yah" along with "Stay the Course" chanting.

(Just KIDDING...)
I'm glad. I didn't want to add nausea to my other problems.
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Old 03-16-2008, 11:31 PM   #28
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Since they paid $2 a share and the building is worth $8 a share, why wouldn't JP Morgan liquidate everything and pocket $6 a share overnight?

And if this happens, why couldn't Bear Stearns have done the same thing?
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Old 03-16-2008, 11:47 PM   #29
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GLD (Gold ETF) is still worth buying despite its lofty price.
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Old 03-16-2008, 11:54 PM   #30
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Since they paid $2 a share and the building is worth $8 a share, why wouldn't JP Morgan liquidate everything and pocket $6 a share overnight?

And if this happens, why couldn't Bear Stearns have done the same thing?
They want to save the bank and to prevent a financial market meltdown or crisis.
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Old 03-17-2008, 04:15 AM   #31
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Little surprise there.

Now lets put Bear Stearns leadership in the penitentiary for fraud and make them disgorge and the sheet will be balanced.
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Old 03-17-2008, 05:42 AM   #32
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Time to buy some BSC near $2?
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Old 03-17-2008, 06:47 AM   #33
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Since they paid $2 a share and the building is worth $8 a share, why wouldn't JP Morgan liquidate everything and pocket $6 a share overnight?

And if this happens, why couldn't Bear Stearns have done the same thing?

True, the one building in Manhattan is worth more than what is being paid...

BUT, someone with some capital had to 'guarantee' BS obligations... nobody else stepped up to the plate, so you bid only $2...

If HSBC or RBS had shown up, I am sure the price would have been higher...

Sometimes it is luck that gets you the good deal....


What is interesting is that JPM is saying the book value of BS (at $80 ish IIRC) is CORRECT... given time to unwind and all.... so JPM just made a few billion if they are even close to correct... glad I own them and not BS...
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Old 03-17-2008, 07:09 AM   #34
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hey at least you didnt lose over a billion....

Bloomberg.com: Worldwide
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Old 03-17-2008, 07:44 AM   #35
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MarketWatch.com: Stock Market Quotes - Business News - Financial News

they are calling this two buck chuck
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Old 03-17-2008, 08:51 AM   #36
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So why is BSC trading for $3.60 if JPM's only buying it for $2?
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Old 03-17-2008, 08:58 AM   #37
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So why is BSC trading for $3.60 if JPM's only buying it for $2?
it's not a done deal.
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Old 03-17-2008, 09:01 AM   #38
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True, the one building in Manhattan is worth more than what is being paid...
The Bear Stearns new headquarters is worth over $1 billion. JP Morgan purchased Bear for $236 Million, so they probably acquired the building at a discount of approximately $764 million.

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Old 03-17-2008, 09:07 AM   #39
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The Bear Stearns new headquarters is worth over $1 billion. JP Morgan purchased Bear for $236 Million, so they probably acquired the building at a discount of approximately $764 million.

Free Preview - WSJ.com
Either that or the rest of the business operations have a negative net worth.
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Old 03-17-2008, 09:14 AM   #40
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The Bear Stearns new headquarters is worth over $1 billion. JP Morgan purchased Bear for $236 Million, so they probably acquired the building at a discount of approximately $764 million.

Free Preview - WSJ.com

What, you think they paid cash?

That $1B building probably has $995M of debt on it. Hell, it's probably owned by a REIT in a sale leaseback.
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