JP Morgan Buys Bear Stearns for $2 a share

[Retire Soon]

JP Morgan Chase has just agreed to purchase Bear Stearns for $2 a share, which gives the investor banker a valuation of only $236,000,000. JP Morgan is guaranteeing trading obligations for Bear Stearns, effective immediately. Do you think this will resolve the crisis?

J.P. Morgan Rescues Bear Stearns - WSJ.com

 

[RockOn]

No, it is a solvency problem, not just liquidity. I think it that should be clear now.

 

[Hillbilly]

Worth $3.54 billion on Friday and sell over the weekend for $236M. Wonder who paid for the difference? You guess it...poor Bear Stearns investors.....Just as good as going bankrupt IMHO...the bottom is near??

Enjoy,

Hillbilly

 

[RockOn]

You think that loss makes this a bottom? God, that seems hopeful to me. How can all these companies lose this much money?

 

[cyclone6]

The bottom is near? Are you kidding?

I've been saying since early last year that we were facing a slow motion meltdown. Dollar - mortgages - trade deficits - negative savings rates. Now the slow motion is an avalanche.

BSC for $2/share? Do you really believe its just Bear? Hell, their CEO said on Wed that they had excellent liquidity. Who do you believe anymore?

There is a long way down yet. The bleak reality of what we face has not yet begun to be factored in by equities. I'll go back to my original forecast (probably to be proven wrong) - the DOW hits 10000 before 15000. Hell, it could happen tomorrow.

Hey Brewer...the man who accused me of wearing a tin foil hat...and of being a piglet sodomiz_ _ - how are those financials that you called a smoking bargain back in August performing?

This pressure has been building for years and years, and now its time for America to pay the piper.

 

[Notmuchlonger]

Just keep buying stocks. Few years from now you will go hey that Notmuchlonger guy was right.. That was quality news letter advice. Consider yourselves lucky I shared a tidbit.

 

[RockOn]

Just keep buying stocks. Few years from now you will go hey that Notmuchlonger guy was right.. That was quality news letter advice. Consider yourselves lucky I shared a tidbit.

\

Is that a bottom call?

 

[Notmuchlonger]

\

Is that a bottom call?

Im not a market timer I been fully invested forever.

 

[RockOn]

I been fully invested forever.

Sorry to hear that at times like this.

How have you done, if you don't mind me asking?

 

[Notmuchlonger]

Sorry to hear that at times like this.

How have you done, if you don't mind me asking?

7 to 10 % down I don't know off the top of my head. 75/25 AA. I sleep the same at night with being down like this or up like this. I believe in positive returns in the long run.

 

[jazz4cash]

http://www.bloggingstocks.com/2008/03/15/is-lehman-brothers-next/

 

[RockOn]

7 to 10 % down I don't know off the top of my head. 75/25 AA. I sleep the same at night with being down like this or up like this. I believe in positive returns in the long run.

Thanks, I'd never say you are doing anything wrong with your approach.

 

[Notmuchlonger]

Thanks, I'd never say you are doing anything wrong with your approach.

I guess only time will answer that question of whether its right or wrong

 

[RockOn]

I guess only time will answer that question of whether its right or wrong

If we only knew.........

 

[unclemick]

Hmmm - I just remembered I have a bunch of old JP Morgan stock amongst my 34 DRIP plans I canceled and moved to Vanguard brokerage.

Hope they got a bargin! .

As I recall I started the DRIP back when JP was choking on Argentine debt back in the late 80's early 90's.

heh heh heh - o well if they cut div.'s they can join my other dead but not buried dogs -Aetna, Union Pacific and Aquila. Aquila's about lowered into the grave.

 

[unclemick]

Hmmm - looks like the far east markets across the international dateline are already tanking - The Chinese Proverb 'may you live in interesting times' - could get well er ah interesting.

heh heh heh - buckle up! .

 

[W2R]

Hmmm - looks like the far east markets across the international dateline are already tanking - The Chinese Proverb 'may you live in interesting times' - could get well er ah interesting.

heh heh heh - buckle up! .

Everything I am reading is predicting a very difficult week ahead (and beyond). Even sources that I would expect to be fairly conservative are saying alarming things, and sounding like Cramer. They say that other banks are sure to follow, and the interest rate may be cut 1-2% by Tuesday but that may not be enough to help, and that the dollar is tanking.

So, I am holding on to my hat and because this part of the roller coaster ride might be long and bumpy (apparently).

 

[maddythebeagle]

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...

 

[RockOn]

I don't see what he has left to pull. Maybe the helicopter.

 

[W2R]

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...

I am a teetotaler but if I was in his shoes, I think I'd go for something considerably stronger than pizza and mountain dew by now! I am watching CNBC too but right now, all they are talking about is how badly the foreign markets are responding and tanking at the moment.

 

[frayne]

You mean that $200K I sunk in Bear Stearns Friday wasn't a smart move.

 

[RockOn]

It's lookin good. Buy, buy, buy! You can get a ton of shares at $2.

 

[barbarus]

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.

 

[W2R]

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...)

 

[Patrick]

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.