Bear Is Toast!!!!!!!!

[Mega]

Holy SHIT! (sorry Eric,but)
http://www.bloomberg.com/apps/news?p...tOI&refer=home
Mike

[kelton56]

Re: Bear Is Toast!!!!!!!!

Apparently Bear Stearns couldn't wait until March 27th when the TSLF kicks in. (Just in time to cleanup the balance sheet before First Quarter results.)

[Southernguy]

Re: Bear Is Toast!!!!!!!!

Is that true??

March 14, 2008, 10:51 am
Parallels to 1907, or the 1930s?

Posted by David Gaffen
News that J.P. Morgan Chase was acting as a conduit to lend money to Bear Stearns evoked images of J. Pierpont Morgan himself in 1907 stepping in to backstop the financial system in the wake of one of the last century’s worst banking panics.
But it’s possible that this is more like the 1930s. Tony Crescenzi, in a comment today, notes that reserve banks are authorized “in unusual and exigent circumstances” to extend credit to a company that is “not a depository institution” if they can’t get credit from other sources. Bear Stearns isn’t a depository institution — and they’re getting the money through J.P. Morgan, which is.
Mr. Crescenzi notes that loans of this type were used in the 1930s — but have not been used since.

[kelton56]

Re: Bear Is Toast!!!!!!!!

Is that true??

March 14, 2008, 10:51 am
Parallels to 1907, or the 1930s?

Posted by David Gaffen
News that J.P. Morgan Chase was acting as a conduit to lend money to Bear Stearns evoked images of J. Pierpont Morgan himself in 1907 stepping in to backstop the financial system in the wake of one of the last century’s worst banking panics.
But it’s possible that this is more like the 1930s. Tony Crescenzi, in a comment today, notes that reserve banks are authorized “in unusual and exigent circumstances” to extend credit to a company that is “not a depository institution” if they can’t get credit from other sources. Bear Stearns isn’t a depository institution — and they’re getting the money through J.P. Morgan, which is.
Mr. Crescenzi notes that loans of this type were used in the 1930s — but have not been used since.

It was rumored that the TSLF was created, in part, specifically to help Bear Stearns, but according to it's CEO today, it was facing a material liquidity crisis. So JPM steps in to take Bear's mortgage collateral, and then JPM uses it to borrow from the Fed's discount window and re-lend the proceeds to Bear. Neat, huh?

[FRED]

Re: Bear Is Toast!!!!!!!!

Is that true??

March 14, 2008, 10:51 am
Parallels to 1907, or the 1930s?

Posted by David Gaffen
News that J.P. Morgan Chase was acting as a conduit to lend money to Bear Stearns evoked images of J. Pierpont Morgan himself in 1907 stepping in to backstop the financial system in the wake of one of the last century’s worst banking panics.
But it’s possible that this is more like the 1930s. Tony Crescenzi, in a comment today, notes that reserve banks are authorized “in unusual and exigent circumstances” to extend credit to a company that is “not a depository institution” if they can’t get credit from other sources. Bear Stearns isn’t a depository institution — and they’re getting the money through J.P. Morgan, which is.
Mr. Crescenzi notes that loans of this type were used in the 1930s — but have not been used since.

See A Financial Market Crash is a Process, Not an Event

[kelton56]

Re: Bear Is Toast!!!!!!!!

WASHINGTON (AP) -- The Federal Reserve invoked a rarely used Depression-era procedure Friday to bolster troubled Bear Stearns Cos. and said it will provide even more help to combat a serious credit crisis.

The action won praise from the administration, with President Bush saying that Fed Chairman Ben Bernanke was "doing a good job under tough circumstances."


How close is that to "Heck of a job Brownie...!" ???

[jk]

Re: Bear Is Toast!!!!!!!!

carlyle capital was 2 days ago. bear stearns today. any nominations for the next big blow-up?

[Mega]

Re: Bear Is Toast!!!!!!!!

God only knows what Peter Schiff is going to say about this!
Mike

[BiscayneSunrise]

Re: Bear Is Toast!!!!!!!!

How about one of the airlines as collateral damage? Even after bankruptcy they are walking wounded with heavy debt and reliant on regular transfusions from the banks.

[kelton56]

Re: Bear Is Toast!!!!!!!!

carlyle capital was 2 days ago. bear stearns today. any nominations for the next big blow-up?

How about E-Trade???

[touchring]

Re: Bear Is Toast!!!!!!!!

How about E-Trade???

Gosh, i'm watching this, interested to buy some of this if it does survive subprime. anyone knows about this company?

[bart]

Re: Bear Is Toast!!!!!!!!

See A Financial Market Crash is a Process, Not an Event

http://www.nowandfutures.com/grins/timgrunt.wav

[metalman]

Re: Bear Is Toast!!!!!!!!

God only knows what Peter Schiff is going to say about this!
Mike

googlin around and came across this...

http://www.aquafans.org/discus/messa...tml?1205096726

is this you?

http://www.aquafans.org/discus/board...=agemx1x-users

what's aquafans? and how come you get to talk to ej?

[Mega]

Re: Bear Is Toast!!!!!!!!

I think the next 2 weeks are going to be "Busy!"
Mike

[rtchoke]

Re: Bear Is Toast!!!!!!!!

googlin around and came across this...

http://www.aquafans.org/discus/messa...tml?1205096726

is this you?

http://www.aquafans.org/discus/board...=agemx1x-users

what's aquafans? and how come you get to talk to ej?

Ouch! Ouch! Ouch!