Just a couple weeks ago, the investment banking company was worth $62.69 per share - $100.00 per share for their stock holders. The next couple days would become a pattern the American public is growing to comfortable in seeing. This story has all the makings of a hit movie with lies and deceit and broken lives. Once again the victims are all the hardworking American families just looking for that sure bet. Or a gamble on the advice of you favorite television personality. On February 20th 2008 Bear Stearns Chairman James Cayne declared that he owned 4.79 percent of Bear Stearns in the form(reuters) of 7.01 million shares the equivalent at the time a share was worth about $95 per share. That would be $665,950,000.
Just a day before (2/19) Chairman went bragging about the size of wallet, Bear Stearns Equity group purchased an Australian base investment firm called Macquarie Private for $116,000,000 cash (The Age.au)
On March 10th the president of Bear Stearns advised stockholders that it was such a strong stock.
"Bear Stearns (NYSE:BSC) Cos. late Monday issued a statement denying 'market rumors' about the firm's liquidity.
The New York-based financial services firm said 'there is absolutely no truth to the rumors of liquidity problems that circulated today in the market.'
'Bear Stearns' balance sheet, liquidity and capital remain strong,' said Alan Schwartz, president and chief executive.
The company's shares closed at $62.50, down 11%."(CNN Money)
On March 11 the genius that is Jim Cramer had some answers for JIM
Dear Jim: Should I be worried about Bear Stearns
Bear Stearns Co Inc BSC 4.81 -25.19 -83.97% NYSE
[BSC 4.81 -25.19 (-83.97%) ] in terms of liquidity and get my money out of there? --Peter
Cramer says: “No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”(CNBC Jim Cramer)
On one note, he was right, they were taken over. At 2.00 dollars a share by JP Morgan.
No worries though, how was Cramer supposed to know, its not like the SEC (Not the Football conference) thought anything was wrong. They let Bear Stearns accumulate more debt just a day later.
"On March 12 Bear Stearns purchased 15% the Canadian based securities company Tembec at $15.04."(North Bay Nugget)
That is $225,600,000. They can't be broke, is anyone monitoring these imaginary exchange of money that doesn't exist.
On Friday Bear Sterns admitted that they lied this whole time and need a lot of money, a lot of money, 15 billion dollars worth. That is 9 zeros after the 15, to bail out their board, and screw their investors. Forbes.com reports
BAILOUT: JPMorgan Chase will lend Bear Stearns money for 28 days, with a backup guarantee from the Federal Reserve Bank of New York. No one has disclosed how large the financing is.
NO CASH: Bear Stearns (nyse: BSC - news - people ) says it ran into problems within 24 hours amid a spike in demand from people trying to get their cash out of the firm. Earlier in the week Bear denied rampant market speculation that it had cash problems.
PLUNGING VALUE: As of midday Friday, Bear Stearns had lost more than $5 billion in market value and was trading at its lowest point in nine and a half years. The company said it hired Lazard (nyse: LAZ - news - people ) to help it explore alternatives.(Forbes.com)
I guess the Federal Reserve felt bad with their assumed made up power that Bear Stearns should get 100% help vs the million of consumers with bad credit should get $600 to help cushion the value homeowners lost in the preceding months. Mind you that this super loan helps the Bear Stearns chairman recover his 600,000,000 million lost since his stock is no longer worth $665,950,000 but a meager $14,020,000. Why doesn't the Fed help consumers, o yeah because their not rich(Bunch of Suckers!).
In Three days the headlines changed from:
Bear Stearns to Launch First Actively Managed ETF. March 10 sounds promising
Is Bear Stearns Doomed? March 13 Nooooooooooooooooooo!Bear Stearns Calls for Bailout March 14 "Really why would they lie to me this whole time"Bear Stearns Calls for Bailout March 14
:( boo fed reserve, get rid of the fed reserve or get really really rich.
If you still feel like listening to the stream of garbage that comes out of the presidents mouth, you can listen to his speech at the New York Economic club. Bush thinks that more tax cuts to rich people is the answer. How do we get out of debt by creating more, war, tax cuts, corporate bailouts? Pisssssssh its not possible, we are going to be broke for a long time.
The Economic Envy of the world, you champion the free market and yet you don't believe in it?
This ain't the first time, your track record is looking a lot worst then i remember. How can anyone vote for someone who wants to continue this economic policy. The only reason our economy bounced back, is because we have been using credit to buy everything since the start of your Rule. Just watch the first 5 minutes and you will understand what I am talking about. Stop pissing on me and calling it rain. that is all this speech is.
part 2,blah blah blah blah
Here is a logical assessment I found on the internet.
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