Bear Stearns just got bailed out???

[Cowlesy]

The Federal Reserve is going to extend some sort of secured funding to JPMorganChase who will in turn extend funding to Bear Stearns.

What kind of gangster shit is this??

[OptionsTrader]

http://www.youtube.com/watch?v=7ZUP-jCtsYA

[OptionsTrader]

Monetary policy controlled by the same administration that will fight a war based on lies; these crooks can be counted on to do whatever it takes to keep on truckin' in the direction the decider decided.

[micahnelson]

Monetary policy controlled by the same administration that will fight a war based on lies; these crooks can be counted on to do whatever it takes to keep on truckin' in the direction the decider decided.

Gonna have to call shenanigans on the decider. I don't think hes holding the strings, i think he is just tied to them.

[OptionsTrader]

Gonna have to call shenanigans on the decider. I don't think hes holding the strings, i think he is just tied to them.

Along with everyone else. Almost.

http://i190.photobucket.com/albums/z266/danos714/RONPAUL-1.jpg

[Cowlesy]

look at this whipsaw...up 11%, now down 2% in the course of about 8 minutes....Bear was in a liquidity crisis apparently----

[OptionsTrader]

BSC was pretty much where all of this started showing its ugly head last February.

[yongrel]

Gotta love accountability. Wait... nevermind.

[OptionsTrader]

edit: nm, wrong graph

[OptionsTrader]

Keeping my index staddles on and going out, good luck.

[scooter]

You can look at this positively in one sense. The Fed didn't bail out Bear Stearns. JP Morgan is taking on the risk.

[RadiantBlueLight]

Wow, prices are whipping around right now.

[MsDoodahs]

Ugh.

[Cowlesy]

I took my SRS off the table, but am sticking in at SKF.

[Mortikhi]

its not helping
http://finance.yahoo.com/q?s=BSC

leave it up. watch the value keep dropping. down 40% right now

[Shed]

Of course not: would you buy shares in a bank that was going bankrupt?

[ItsTime]

how much were they bailed out and where did the money go? Sorry I am ignorant on how bail outs work. Do they just bail out the CEOs because I do not see any money going to the stock holders right now.

[grizzums]

You can look at this positively in one sense. The Fed didn't bail out Bear Stearns. JP Morgan is taking on the risk.

Negative. JP isn't taking on the risk. The Fed will not hold JP liable for the worthless assets of BSC used as collateral for treasuries loaned to BSC via JP through the discount window. Make no mistake, this WAS a Fed bailout....why? Because BSC very well may have had to close their doors if they did not get this deal....so, technically yes, this is just a loan (28 days - at this point), but also a bailout. Is it a tax payer subsidized bail out? Not yet, but hang onto your hats.

JP is going to be able to get a good look at many of BSC's assets.....not that they are going to be able to mark many of them, but if BSC gets bought out, JP will be in the best position to do so, imho.

Free market capitalism in the US?....Hardly.....we (US) are not a free market capitalistic country.

[Cowlesy]

Negative. JP isn't taking on the risk. The Fed will not hold JP liable for the worthless assets of BSC used as collateral for treasuries loaned to BSC via JP through the discount window. Make no mistake, this WAS a Fed bailout....why? Because BSC very well may have had to close their doors if they did not get this deal....so, technically yes, this is just a loan (28 days - at this point), but also a bailout. Is it a tax payer subsidized bail out? Not yet, but hang onto your hats.

JP is going to be able to get a good look at many of BSC's assets.....not that they are going to be able to mark many of them, but if BSC gets bought out, JP will be in the best position to do so, imho.

Free market capitalism in the US?....Hardly.....we (US) are not a free market capitalistic country.

Right...a Fed bailout...or as I like to see it, a TAXPAYER bailout.

Btw, Meredith Whitney just said BSC common stock could be worthless. Also, BSC says their book is worth $80/sh. hah

[scooter]

Negative. JP isn't taking on the risk. The Fed will not hold JP liable for the worthless assets of BSC used as collateral for treasuries loaned to BSC via JP through the discount window. Make no mistake, this WAS a Fed bailout....why? Because BSC very well may have had to close their doors if they did not get this deal....so, technically yes, this is just a loan (28 days - at this point), but also a bailout. Is it a tax payer subsidized bail out? Not yet, but hang onto your hats.

JP is going to be able to get a good look at many of BSC's assets.....not that they are going to be able to mark many of them, but if BSC gets bought out, JP will be in the best position to do so, imho.

Free market capitalism in the US?....Hardly.....we (US) are not a free market capitalistic country.

Yes. Some more information surfaced after the original press releases made it sound like JP was taking on the bad paper.

In reality, the Fed is going to be taking on the bad paper. They are just using JPMorgan as a middle man because they are a bank that has legal access to the overnight window. Bear Stearns is an investment firm and normally would not be allowed to use these emergency funds.

It's ridiculous. The Fed and our tax money is now being used to bail out Wall Street investment firms. They won't allow ANY of these rich pricks to lose their money.

[HOLLYWOOD]

You can look at this positively in one sense. The Fed didn't bail out Bear Stearns. JP Morgan is taking on the risk.

There's NO RISK to JP... they are backed by the FEDS!

That's the deal on the bailout, so the government doesn't own or be the DIRECT creditor to BS. Just like the BANKS using a 3rd party to provide Sub_prime loans... because rules them from doing the bad credit loans so they find a loophole, again, close to against the law, but not. ALL IN THE NAME OF GREED! WHO PAYS? WE DO!

Here's the DEAL on who pays... of COURSE it's the US TAXPAYERS AGAIN!:

http://finance.yahoo.com/tech-ticker/article/6242/Pathetic-Bear-Stearns-Bailout:-Who-to-Blame?tickers=bsc,jpm (http://finance.yahoo.com/tech-ticker/article/6242/Pathetic-Bear-Stearns-Bailout:-Who-to-Blame?tickers=bsc,jpm)

[grizzums]

As it turns out....perhaps this story of Mr. Cayne was true....I mean he must have been smoking something to have as much money wrapped up in BSC as he did....

"Bear Stearns CEO says pot smoking story untrue"

http://www.reuters.com/article/funds...48190620071101

I think he took just a weeeeee bit of a loss today. If he wasn't smoking before....I bet he fires up one tonight, eh?

[Cowlesy]

As it turns out....perhaps this story of Mr. Cayne was true....I mean he must have been smoking something to have as much money wrapped up in BSC as he did....

"Bear Stearns CEO says pot smoking story untrue"

http://www.reuters.com/article/funds...48190620071101

I think he took just a weeeeee bit of a loss today. If he wasn't smoking before....I bet he fires up one tonight, eh?

smoke'em while you got'em

[NewEnd]

This is the kind of bullshit that pisses me off ot no end. Those fucking suits dont do shit but play with other people's money and drive bentleys, and pretend they know something, and then when it becomes apparent they dont know shit, the Fed comes in and bails their rich asses out, so they can keep their third homes int he Hamptons.

:mad:

[OptionsTrader]

I'd call that "high volume" selling.

And the beat goes on.

http://i30.tinypic.com/j0cvwg.gif

[OptionsTrader]

$35 puts up over 1000%

http://i31.tinypic.com/2j3h1ua.gif

[Dr.3D]

You can look at this positively in one sense. The Fed didn't bail out Bear Stearns. JP Morgan is taking on the risk.

Heh... the FED... aka, you and me are bearing the risk of the Bear Stearns bailout.

Read more about it here.....

http://online.wsj.com/article/SB120550108028136579.html?mod=yahoo_hs&ru

And imagine any company with the name "Bear" doing well in the market. :rolleyes:

[spudea]

What kind of gangster shit is this??


Its called fascism.


fascism makes taxpayers responsible to private enterprise, because "the State pays for the blunders of private enterprise... Profit is private and individual. Loss is public and social."