irst they find that BEAR STEARNS has huge problems and they have to immediately have to BAIL them out. The FED meets with JP Morgan and they say. ” We need to bail out the whole banking system, so here’s 30 bill boys , Can you take over Bear Stearns out at $ 2 a share?” . The officials look bewildered but know a good deal when they see one , so they say ” Yeah sure..” Like Frank Pantangeles in the GODFATHER Pt 2. Then the FED add’s. And for being good soldiers, we’ll throw in a .75 rate cut” The boys at JP ” Lick their chops and exclaim to the world…We BUY ” Now I don’t think anybody really thought that the demise of a major firm like BEAR STEARNS would go happen so quickly and without any resistance ( Lawyers are licking their lips) , but does the Government, JP Morgan, and even Bear Stearns think we are all idiots? Uh for those that have forgotten ENRON,LONG TERM CAPITAL, The Banking Scandal, TYCO, World Com, etc etc the ansewer in a resounding YES ! Now JP Morgan is feeling guilt for stealing the firm at $ 2 a share, so they want to raise the bid to $ 10. So what’s next on the wink-wink front ? $ 15 a share..Then 25 $ , Then back to the price Bear Stearns was before the supposed demise? What a Machiavellian setup this was..is !
