Bear Stearns - Cramer's double take

[Running_Man]

For some good humor!
On Tuesday Cramer said this about Bear Stearns in reccomending taking a position in the stock, "let me state vociferiously there is no liquidity issuue!"!
TheStreet.com : Video

Here is today's take:Now he is recomending the bonds and says avoid the stock: "Well the CEO wasn't a liar!"

TheStreet.com : Video

 

[poboy]

WASHINGTON — The Federal Reserve invoked a rarely used Depression-era procedure Friday to rescue Bear Stearns Cos. — the nation's fifth largest securities firm — as nervous investors sent the company's share price down a record 53 percent.

I am going out on a limb here, does rescue mean my tax dollar is at work?

 

[al_bundy]

the new facility they announced a few days ago, the rumors were right that it was for bear stearns

i started playing with stocks back in 2000 and watch CNBC on and off. by now it's easy to spot when these guys are lying through their teeth.


this week we had the Fed and the SP come out to try to make things better and it didn't really do anything for the bank stock and financials. that's because the insiders know the game and what is really going on. otherwise their internal traders would have been buying up the stocks

 

[Spanky]

I am going out on a limb here, does rescue mean my tax dollar is at work?

Yes. The Fed is effectively assuming the liabilities of Bear Stearns. Since the Fed's source of capital is from the tax payers, we will pay for it.

 

[W2R]

i started playing with stocks back in 2000 and watch CNBC on and off. by now it's easy to spot when these guys are lying through their teeth.

Me too - - they are usually lying through their teeth when they open their mouths and start to talk!

 

[al_bundy]

pretty much

supposedly this was caused by their level 3 off the balance sheet "assets". remember that a lot of banks have these.

we get a week where the fed is giving out $200 billion, but no names and secret rumors of bear stearns being in trouble. then the next day SP comes out and says the bad days are over. the same organization that rated all this junk AAA. paulson speaks. CPI comes out and the seasonally adjusted numbers are shining even though all the commodity charts point up.

and surprise, bsc is in trouble after they said they are not and suddenly their financials got bad in a few days

 

[haha]

Yes. The Fed is effectively assuming the liabilities of Bear Stearns. Since the Fed's source of capital is from the tax payers, we will pay for it.

Not to worry; they'll just "borrow" it from the Social Security Trust Fund.

Ha

 

[crazy connie]

The market closed and one of the heads (sorry, I did not catch his name) said...

This is not a recession, we are heading into a depression. It may not be as bad as the GREAT DEPRESSION but still a depression.

This is not news to many here! I wonder how many millions Bear will pay to CEO who allowed this to occur

 

[ziggy29]

The market closed and one of the heads (sorry, I did not catch his name) said...

This is not a recession, we are heading into a depression. It may not be as bad as the GREAT DEPRESSION but still a depression.

Real responsible. Just keep repeating it, media hacks, and make it a self-fulfilling prophecy by scaring the crap out of everyone. You beat the "recession drums" for months and you scared us into one. Now you're reaching for the depression drums. Lovely. What a bunch of drive-by financial porn stars. I can't stand their cheerleading for tougher times.

 

[Notmuchlonger]

Not to worry; they'll just "borrow" it from the Social Security Trust Fund.

Ha

Probably right. I hope Im not the one paying for it in my life time

 

[Spanky]

This is not news to many here! I wonder how many millions Bear will pay to CEO who allowed this to occur

Here are some of the numbers:
James E Cayne, Chairman of the Board/Director, $38,313,890
Alan D Schwartz, President/Director/CEO, $35,734,422
Samuel L Molinaro Jr, Executive VP/CFO/COO, $26,553,750
Alan C Greenberg, Director, $19,920,272

 

[Patrick]

Here are some of the numbers:
James E Cayne, Chairman of the Board/Director, $38,313,890
Alan D Schwartz, President/Director/CEO, $35,734,422
Samuel L Molinaro Jr, Executive VP/CFO/COO, $26,553,750
Alan C Greenberg, Director, $19,920,272

I hope it was all in BSC stock.

 

[Patrick]

Here is today's take:Now he is recomending the bonds and says avoid the stock: "Well the CEO wasn't a liar!"

I wonder who bought those 17,500 puts on BSC yesterday?

 

[Running_Man]

I wonder who bought those 17,500 puts on BSC yesterday?

I read on a tech board site that on Thursday there actually was a single trade for 55K in Bear Stearns 30 puts. Will be interesting to see if the SEC investigates

 

[al_bundy]

supposedly this was caused when people wanted to cash out level 3 assets. couldn't have been an investor in these assets who knew everyone wanted their money and if bear was stalling chances are they were short on cash

 

[Spanky]

I hope it was all in BSC stock.

No..
Salary $250,000

Bonus $16,237,150

O
T
H
E
R Latest FY other short-term comp. $0

Latest FY other long-term comp. $19,247,272

Latest FY long-term incentive payout $0 Total $35,734,422