Bear Stearns is going into hibernation - permanently
I hope all of you hard working folks out there got your money out of Bear Stearns (BSC) Friday when it was announced that JPMorgan Chase was buying Bear Stearns at $2 a share. Ouch! The beast came tumbling down, opening at $3.18 this morning after the announcement over the weekend.
AP Business writer Joe Bel Bruno makes me giggle. He writes, “A complete collapse of Bear Stearns might have completely crushed the already-dwindling confidence in the global financial system, which has frozen up after last year’s collapse of the subprime mortgage market.” Is it just me, or did Bear Stearns completely collapse?
The collapse of Bear Stearns is something that needed to happen. As Jim Rogers said, we need a financial forest fire so that we can start over and stop pretending that this bubble economy is real. One thing that we certainly do not need is the federal government, in its typical fascist manner, using taxpayer dollars to bail out more failing financials. Regarding Bear Stearns, this is the last thing we need to be reading: “The Fed also essentially made the takeover risk-free by saying it would guarantee up to $30 billion of the troubled mortgage and other assets that got the nation’s fifth-largest investment bank into trouble.”
More on the failing bubble economy:
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