Bear wasn’t sold for $2/share. JP Morgan Chase offered $2/share. Bear still have an chance to reject this offer or negotiate. There might even be a different offer all together. The point is that this deal is not closed and the market treat it that way. Why do you think BSC closed today at $4.81 when JP offered $2? The lowest it went today was $2.84, still well over the $2 offered.
I don’t like bail out just like the next guy, especially when it’s more the big wigs. However, like golfgal point out, you also have to consider what would have happened if the were no bail out and FED defended the dollar and raised rates instead of lowering it the last several months. The worse case would be major bank failure/bankruptcy. Which will make it nearly impossible to get a mortgage. Since rates would be higher, all the sub-prime and most of the alt-A will go into foreclosure. This would hemorrhage from top to bottom. Sure, the saver might think they’re insulated now, but what would happened if all of this cause a depression and most of us lost our jobs for 2-4 years. Do you have enough cash to survive that long? If so, would you have extra $ to take advantage of the hard crash? Just trying to play devil’s advocate, but there’s no silver bullet. We have to pick the lesser of the 2 evils, and I have to assume that all those people running the FED are smarter than all of us on this board, or else, God help us all.
I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.
I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.
I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.
I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.
I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.
the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.
the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.
the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.
the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.
the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.
