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And So It Begins: Financial Market Woes

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codemonkey

For those that haven't read the news, Bear Stearns, the nations 5th largest financial trading house, almost went Bankrupt this a.m. when the floor fell out of their risky bets on some loans (by some, I mean enough to cause its financial unwinding).

Bear Stearns was saved from bankruptcy when JP Morgan came along and bought them up for $2.00 a share (I believe they were trading for $60.00 a share a week or so ago). That's a HUGE drop in value, pretty much enough to kill off anyone so JP saved them from the inevitable.

I'd read up on it, as I can only assume smaller financial institutions around them (or bigger ones even!) are having many of the same problems. This is probably the first of many unhappy announcements to be made. If anything can be listed as a cornerstone to a recession I think this might be one of them.

Sad. True.

Comments (3)

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TaxiSquad27·
The fun continues..\r \r http://finance.yahoo.com/q?s=gs - Goldman Sachs\r http://finance.yahoo.com/q?s=leh - Lehman\r \r Talking about a Lehman buyout next. Scary shit.
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codemonkey·
lol, \"We're Not Bear, We're Not Screwed\" - Great title :)
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Caduceus·
I said to my wife - \"It is like if MGM stopped making movies.\"\r \r She used to work for CIBC in New York and said - \"Honey, its like if Hollywood stopped making movies.\"