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The big news this morning is that Bear Stearns is being bought out for $2 a share. Basically, if you owned stock in that company, you're screwed. But someone explain to me how the price of the stock went from $30 on Friday (which, presumably, was the price a willing seller would pay to a willing buyer) to $2 over the weekend. It sounds like the equivalent of a "run on the bank" for Bear Stearns but I'm not sure why it happened.
And the story also mentioned that at $2 a share, the price of the takeover is actually less than the value of the real estate the soon to be defunked company owned.
And, one more thing, with gold at $1,000 an ounce and the Euro being worth a ton more than the dollar, are these dark days?
18 comments:
We put in a call to Martha Stewart and should have an explaination fortwith fort worth hmmm fo sho.
who cares? i want to see a pict of brittany!! that is what's important.
Brittany has left the building
Typical behavior on a takeover. Possible financial statement screwup...Misstatement of revenues, etc... SEC will probably be involved soon.
JPMorgan also takes the responsibility of ALL Bear Stearns Debt. You must add this to the total value of the company.
Brittney's publicist must be fired. She hasn't gone goofy in over two weeks. Please search archives and at least post some pics from the past. We are having withdrawals.
Wait a minute! Didn't King George say "The economy is doing fine."
Typical, screw the employees and the shareholders, while top management waltzes away with pockets full of $$. This is a crime, lots of people have their 401K funded wih the Bears Stern stock an now it is vitually worthless. In two business days from $70 to $2 something is screwed up.
Greed - one of the seven deadly sins....
The other six involve Brittany Spears.
Hey, Bar.
The word you are looking for is "defunct."
"Defunked" is what happens to a rapper when he goes straight.
Ask Jim Cramer...
3:03
I don't care who you are...that was funny right thar! Defunked!! LOL!!!
Barry, Call me later. I'm kind of busy right now.
ARMs so that people who can't afford something can have it, credit cards, attitudes such as "those damn credit card companies expect me to pay back the money they loaned me. How dare those bastards send me letters", and a host of other "me", "now", "entitled" approaches to life is why we will soon be in very dark times. And we will deserve it. We will also deserve what we get for sitting by over these many years and not being involved in schools, for not raising kids that can be productive, for allowing tens of millions of extra freeloaders to place demands on "free" healthcare and food stamps and "who's gonna take care of me?" Do you realize there are STILL thousands of people in New Orleans wanting to know who is coming to clean up their yards? Find them a job? After two and a half years? We have raised a soft, dumb populous. Very soon now, there will be more people riding the gravy train than there are to pull it...and those riding it will still want what they've had. And then, they just come get it. Whether through the government they are now able to elect, or just by taking it. We think the "government" is bailing out the financial situation. We'd get the picture if instead it was every hard working homeowner being forced to write a thousand dollar check to the CEO of Bear Stearns to help out his problem. Yet, that's what's happening.
Barry, please relax. Our government (our tax money) is backing the purchase by JPMorgan. Morgan is getting the Bear Sterns for about $240 million (book value was supposedly $80 Billion). Putting in perspective, Morgan gets this big bank for less than the Yankees paid their 3rd baseman. Soooo, we taxpayers get to make Morgan a good deal where they have no risk and Bear Sterns employees and common stock owners get royally screwed. However, I'll bet the top brass will get hansom payouts.
Those who decry givernmint messing with our fine bidnezes may recognize that some regulation is required. In this case, the regulators just didn't do their job so we taxpayers get hit again. Ahaa, Wise Co is more interested in Brittany anyway.
But what caused their stocks to fall like crazy was their customers, or those who had their money in the bank, got scared on Thursday, pulled out all their money, and stocks went from $57 to $2. If those people hadn't of gotten scared, it wouldn't have fallen like a hot potato. JPMorgan would have paid alot more, or it wouldn't have sold. People freaked out.
6:06 pm, you are so right on. These lenders who gave folks ARM's so they could take advantage of folks who were enamored with the thought of buying a house they couldn't afford shouldn't be bailed out by the government. Nor should those folks who bought the house they couldn't afford. but I tend to blame the lenders more, because they knew what they were doing. Many of the folks who took the loans were just happy to be able to buy a house. They just got burned when the housing market failed about the same time their mortgage rate went way up. Oil prices are really hurting the poor folks too. Not just gas, but groceries skyrocketed too.
Oreo Bammy's preacher was right. The chickens are coming home to roost.
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