[Horrible Peanut]

Any thoughts on JP Morgan acquisition of the Bear Sterns for $2/share?<br><br>
It was valued at $80 last month.<br>
It was valued at $146 last year.<br><br>
Lifetime brokers at BS who were worth Millions last week are now worth hundreds of thousands.<br><br>
Do you think this is one step closer to a recession?

 

[Horrible Peanut]

Sorry that a typo.<br><br>
The shares for Bear Sterns Market was $80/p.s. last WEEK.<br><br>
The peanuts regrets the error. Bad peanut. bad.<br><br><img alt="biggrin.gif" src="http://files.kickrunners.com/smilies/biggrin.gif"> How's that for a retraction?

 

[kruss]

I don't know that this is reallly another indication of an impending recession. BS-has a lot of old deals on their books (which were basically crap) and have been taking a lot of write offs in the past few years. Probably should have been taking more, in hindsight. Living in metro NY area w/ a lot of Wall Street folks I do think we will see a more conservative approach to spending. I have to say up to now I have seen no changes in people's spending/living habits as a result of market conditions. It seems that people of this socio-economic level were not effected. This one may hit closer to home.

 

[Horrible Peanut]

Interesting Kruss.<br>
The contraction (in my understanding) is pretty contained to the Construction and mortgage refinance sectors of the economy. The reason there is little to no impact is that there was no contraction in GDP (which is an indication of domestic economic activity)- so the impact was pretty minimal.<br><br>
As far as Bear Stearns goes- Is this what Gordon Gecko was talking about? Greed is Good? Greed is cleansing? It keeps the company nimble and agile and competitive and if it can't compete- it gets bought for 1/40th it's worth a week ago <img alt="razz.gif" src="http://files.kickrunners.com/smilies/razz.gif">

 

[mrscoby78]

I work for JPM Chase, and I've seen absolute panic over the situation. People questioning FDIC, making sure they are fully covered, pulling money out to put in other banks to keep things spread out, selling out of their investments. I even had someone go so far as closing out all bank accounts and keeping their money in a safe at home.

 

[Horrible Peanut]

That's stupid! Everyone knows under the shed in the backyard offers better returns <img alt="icon_salut.gif" src="http://files.kickrunners.com/smilies/icon_salut.gif">

 

[kruss]

Speaking of movies I could watch over and over<img alt="smile.gif" src="http://files.kickrunners.com/smilies/smile.gif"> Gordon Gecko-proof that power is the ultimate aphrodisiac. Now I have to go dig that movie out-I want to watch it again!

 

[Horrible Peanut]

Oh- those suspenders are freakin' hawt!<br>
Pleats do it for me <img alt="biggrin.gif" src="http://files.kickrunners.com/smilies/biggrin.gif">