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03-16-2008, 08:32 PM
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#21
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Thinks s/he gets paid by the post
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,893
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You mean that $200K I sunk in Bear Stearns Friday wasn't a smart move.
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03-16-2008, 08:35 PM
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#22
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Full time employment: Posting here.
Join Date: Jan 2008
Posts: 798
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It's lookin good. Buy, buy, buy! You can get a ton of shares at $2.
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03-16-2008, 08:38 PM
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#23
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Recycles dryer sheets
Join Date: Aug 2007
Posts: 433
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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. 
__________________
Consult with only myself as your adviser or representative. My thoughts should be construed as investment advice of the highest caliber. Past performance is but a pale shadow and guarantee of even greater results in the future.
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03-16-2008, 08:44 PM
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#24
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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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...)
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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03-16-2008, 08:57 PM
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#25
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Full time employment: Posting here.
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
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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.
__________________
Retired in 2006 at age 49.
"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
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03-16-2008, 10:10 PM
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#26
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Posts: 2,670
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 Quote:
Originally Posted by Patrick
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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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.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
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03-16-2008, 10:19 PM
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#27
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Recycles dryer sheets
Join Date: Aug 2007
Posts: 433
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Quote:
Originally Posted by Want2retire
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. 
__________________
Consult with only myself as your adviser or representative. My thoughts should be construed as investment advice of the highest caliber. Past performance is but a pale shadow and guarantee of even greater results in the future.
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03-16-2008, 10:31 PM
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#28
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Posts: 2,670
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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?
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
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03-16-2008, 10:47 PM
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#29
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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GLD (Gold ETF) is still worth buying despite its lofty price.
__________________
May we live in peace and harmony and be free from all human sufferings.
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03-16-2008, 10:54 PM
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#30
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Quote:
Originally Posted by retire@40
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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They want to save the bank and to prevent a financial market meltdown or crisis.
__________________
May we live in peace and harmony and be free from all human sufferings.
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03-17-2008, 03:15 AM
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#31
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2007
Posts: 5,072
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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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03-17-2008, 04:42 AM
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#32
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Full time employment: Posting here.
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
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Time to buy some BSC near $2?
__________________
Retired in 2006 at age 49.
"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
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03-17-2008, 05:47 AM
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#33
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Posts: 17,241
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Quote:
Originally Posted by retire@40
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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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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03-17-2008, 06:09 AM
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#34
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,450
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hey at least you didnt lose over a billion.... 
Bloomberg.com: Worldwide
__________________
- Hurry! to the cliffs of insanity!
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03-17-2008, 06:44 AM
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#35
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 1,543
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03-17-2008, 07:51 AM
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#36
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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So why is BSC trading for $3.60 if JPM's only buying it for $2?
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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03-17-2008, 07:58 AM
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#37
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Quote:
Originally Posted by ziggy29
So why is BSC trading for $3.60 if JPM's only buying it for $2?
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it's not a done deal.
__________________
May we live in peace and harmony and be free from all human sufferings.
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03-17-2008, 08:01 AM
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#38
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Full time employment: Posting here.
Join Date: Nov 2005
Posts: 655
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Quote:
Originally Posted by Texas Proud
True, the one building in Manhattan is worth more than what is being paid...
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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
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03-17-2008, 08:07 AM
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#39
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Quote:
Originally Posted by Retire Soon
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.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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03-17-2008, 08:14 AM
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#40
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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Quote:
Originally Posted by Retire Soon
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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