www.thestreet.com/story/10407955/1/jpmorgan-chase-to-buy-bear-stearns.html
Last Thursday, Bears was worth $50, and now it’s worth $2?
Uh-Oh.
That means that J.P.M.C./the Fed took a look inside Bears when they offered to bail-out Bears on Friday, and it’s bad. And if one of the largest investment banks in the U.S. is bad, then there may be more banks that are in serious financial trouble. Even if there aren’t, the market will probably react as if other banks may be the next Bears. Trading between banks will slow to zero. The Fed doesn’t meet until Tuesday, where rates will be cut. The rate they cut is on the bank to bank loans, not bank to consumer rates. Those rates are up to the lender/bank.
Tomorrow could be Black Monday, and the markets will probably tumble.
Any one on the over/under of the close of the Dow? I say -500 points unless the Fed cuts rates tomorrow.
