Bear Stearns, who the hell are you

Bear Stearns investors cried and cried and finally was able to convince JP Morgan to revise their offer from $2 per share to $10 per share. CNBC reports

"JPMorgan has raised its much-scrutinized bid for Bear Stearns to $10 a share in an effort to appease shareholders unhappy with the fire-sale price set in the deal last week. But its efforts may not be enough." CNBC

The crazy part, investors are crying like it is there right to be fully compensated for investing in a company that has no liquidity to any of their assets. Just the name of Bear Stearns.

"major shareholders including British entrepreneur Joseph Lewis are apparently preparing to challenge the new deal, which hands JP Morgan 39.5 percent of Bear Stearns stock and gives them a virtual lock on getting a majority of shareholders on board to approve the deal. Lewis' position is that if JP Morgan is on the hook for Bear's liabilities under the old deal, shareholders could reject it, and JP Morgan would be forced to raise the bid to more than $10 bucks a share, sources close to major shareholders said." CNBC

I understand that I may, scratch that, I am out of line for saying this to the share holders of Bear Stearns. I would like to cordially say Fuck You, how could you reject money to keep the company afloat. Without JP Morgan, the board is worth nothing. With JP Morgans original bid at least you received 2 million dollars back Mr. Lewis a fraction of your investment, with the revised deal you will receive 10million dollars in JP Morgan Stock for your floundering investment. Hey You win some you lose some. Their investors are only talking shit and whining because they know that the fed bailed them out, they should take what they can and shut up.

Once again this entire arrangement proves the power and liability of words.
"Bear Stearns employees are angry with Jamie Dimon, JPMorgan's chief executive, because he stated at an internal meeting that he would not increase the orignal $2 per share bid. Because of this, many Bear employees sold stock at the then-market price of roughly $6. Legal action is a possible avenue.CNBC"

I understand that in normal cases a lawsuit would be warrented. This is anything but normal, to the people that sold it at 2 dollars. Are you stupid? JP Morgan was going to compensate you with their stock in exchange for yours. If you wanted to go ahead and sell your bear stearns stock on the open market, then that is your fault. It is assumed that JP Morgans value will go up with a federally insured loan. Now that the FED invested 30 BILLION, there is no way they are going to let JP Morgan fell. In summarry Bear Stearns Stock Crashed, JP Morgan offered $2 dollars a share in compensation. The inpatient idiots who already lost a shitload of money liquadated their $2 shares, after the Fed announced their loan. In my opionion which doesnt mean much, I dont think they have anyone to blame.

Jim Cramer is not Crazy smart, just CRAZY!!!!!!

Bear Stearns - The Bear Stearns Companies, Inc. is the parent company of Bear, Stearns & Co. Inc., which was one of the largest global investment banks and securities trading and brokerage firms in the world. The firm's main businesses included capital markets (equities and fixed income), investment banking, wealth management, and prime brokerage clearing services.(Wikipedia)
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.

BSC (Yahoo Finance)

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.