Tuesday, March 18, 2008

The Bear Isn't Looking So Bullish

Nearing a financial collapse, the once mighty investment bank Bear Stearns is being purchased by JPMorgan Chase for the paltry amount of $2 per share. And for the first time since the great depression, The Federal Reserve will provide special financing to JPMorgan Chase for the deal. The Fed agreed to fund up to $30 billion of Bear Stearns’ less liquid assets. Bear Stearns shares had once peeked at almost $160, but by Friday were down to $30 per share. What's most surprising about the quick fall of Bear Stearns, established in 1923, is that because it's an investment bank it has been generally detached from the issues affecting subprime lenders. The collapse of one of the world's largest and most historic investment banks would have large implications across the globe.

1 comment:

Ralph R Roberts said...

Great Post
Ralph R. Roberts, CRS, GRI
67775 Van Dyke
Washington Township, MI 48095
Office: (586) 751-0000
Fax: (586) 752-8959
Email: RalphRoberts@RalphRoberts.com
Personal Assistant: Lois Maljak (LoisMaljak@RalphRoberts.com)

Ralph Roberts is the author of many books:
- Flipping Houses For Dummies (Wiley Publishing)
- Foreclosure Self-Defense For Dummies (Wiley Publishing)
- Advanced Selling For Dummies (Wiley Publishing)
- Protect Yourself from Real Estate & Mortgage Fraud (Kaplan Publishing)
- Mortgage Myths: 77 Secrets to Save on Home Financing (Wiley Publishing)
- Foreclosure Investing For Dummies (Wiley Publishing)

Ralph also maintains Websites and Blogs:
- www.RalphRoberts.com (Ralph's real estate company)
- www.FlippingFrenzy.com (Ralph's blog about Real Estate & Mortgage Fraud)
- www.AboutRalph.com (Where anyone can learn more about Ralph)
- www.GetFlipping.com (A resource for house flippers)
- www.KolleenRoberts.com (a tribute site to Ralph's daughter)