I normally don't post on Sundays. But the Fed normally doesn't lower the discount rate from 3.50% to 3.25% on Sunday, and JP Morgan Chase doesn't normally buy Bear Stearns for $2.00 per share!!! on Sunday.....
Wow, BSC was a $170.00 stock just 15 months ago and an $80.00 stock just 15 days ago. Now you can buy the whole company for 236 million dollars. By the way, last year BSC was the first of the Financials to announce a major meltdown in Hedge Funds speculating in CDO's. They lost two multi-billion dollar hedge funds in a blink, and that was the beginning of the death spiral.
The Fed continues to fight the subprime derivative financial collapse the way they think is best. Which now looks more and more like a very good possibility of a 100 basis point cut on Tuesday. One thing that is interesting is that the Asian markets are only down about 2% right now, a lot less than I thought they would be. Still, watch for some volatility in the morning. I will still look at the DIA setup, but I will be keeping a close eye on things.
Subscribe to:
Post Comments (Atom)
Dwight:
ReplyDeleteThanks for the extra effort--I'll pay double time for your Sunday insights--Have we yet to hit bottom-seems like the FED wants to keep the sinking ships afloat when we should just bite the bullet and fix our financial belts and get our financial heads screwed back on correctly vs giving the financials another "Fix". Looking forward to your take on the next probable moves.
Robert
Thanks dwight for an extra update on a sunday, much appreciated.
ReplyDeleteSung
WOW is all I can say. I hardly follow market related news over the weekend since one doesn't expect much news to come out until Monday mornings. Thanks so much Dwight for the heads up and for your extra effort.
ReplyDeleteDwight, looks like a fun week ahead. Why the .25 cut today ahead of this weeks "regular" cut ?
ReplyDeleteWhat do you think of shorting LEH ?
Do you think they could follow BSC into that same hole ?????