JP Morgan Chase buys collapsing Bear Stearns
By Brandon Dawson on Mar 17, 2008 in Business, economy
Yes, that’s right. Bear Stearns collapsed. Here’s their 5-year stock chart: [link]
And today that graph will go from $30/share to $2. The Fed this weekend, along with an additional quarter-point drop in the discount rate, agreed to fund Bear Stearns financial liabilities to the tune of $30 billion dollars at the same time JP Morgan Chase swept in and bought Bear Stearns, worth more than $60/share just five days prior to this writing, for a total of just $236 million.
Today’s the day. We’ll see if the Fed’s attempt to socialize these corporations’ losses from frivolous derivatives trading and freewheeling lending has had the intended effect, or if Bear Stearns’ spectacular collapse was just the first step towards the Second Great Depression.
