Powder Blue Report

News, finance, politics, sports, and fun from the west coast

Friday, March 14, 2008

Extraordinary Day In The Stock Market

JP Morgan and the NY Fed had to step in and bail out investment bank Bear Stearns this morning. I'll have much more to say about this later tonight, but suffice to say that I have warned everyone that this was coming.

4 Comments:

  • At 8:32 PM, Anonymous Phil Paule said…

    Allan

    I think the US Market is going to be in for a wild ride comming off the Bear Stearns $2 a share buy out. In less then a week BSC went from $75 to $2. This will shake the markets. Gold is way up on Sunday night. Where do we go from here ?

     
  • At 9:05 PM, Blogger Allan Bartlett said…

    Hi Phil. When the CEO of Bear goes on TV Wednesday and says everything is fine, that should have been the first clue that all was not well at Bear. As you point out, JP has bought Bear for a svelte $2 bucks a share tonight. What JP did essentially is "mark to the market" a lot of the toxic stuff that Bear and all the other big Investment Banks have on their books. We're going to see companies like Merrill Lynch, Citigroup, Lehman Bros, Goldman, etc get absolutely hammered tomorrow. The Fed is scheduled to cut the rate by a half point on Tuesday, but I have a sneeking suspicion that they are going to swing into action again tomorrow before the market opens and cut the rate by a full point or more. The implosion of our market has begun. There is no confidence that anyone knows what value to assign these companies anymore. I'm just going to keep shorting the dollar, the investment banks and stay long gold, silver, Swiss Francs, & mining companies. I have done all I can to warn people about this. We're are headed a lot lower on the stock market.

     
  • At 11:44 PM, Anonymous cook said…

    The 5th largest investment bank goes for 2 1/2 cents on the dollar.

    Think food and shelter.

     
  • At 9:35 AM, Anonymous Anonymous said…

    Did you see Treasury Sec Paulsen on
    ABC's "This Week"? Stephanopoulus
    asked him about his "strong dollar
    policy". He just gave a double-speak
    answer about free trade etc.
    http://abcnews.go.com/ThisWeek/Vote2008/story?id=4460517&page=1

    Chaz

     

Post a Comment

<< Home