It is always sad when innocent folks lost their jobs, given that Bear Stearns is history....But the question is this:
Why is Bernanke bending over backwards to Save a midget size IB.
BSC is not a money center bank, like C, BSC or JPM.
The behaviour of Fed during the BSC crises, looks to me that Bernanke, Treasury and Fed, after looking at BSC books are extremely nervous about whats in it and trying their best to save it.........for fear the entire Credit System may collapse taking with it, the USA economy and probably entire world with it, even though it is a provacative thing to say. But I am incresingly getting convinced things are lot more precarious than people are willing to acknowledge or admit it.
The entire Bear episode will raise lot of questions, but most pertinent one going to be
Who's next?
Now everyone will be questioned and no one will trust anyone........Given that all the other Banks that is GS, C, MS, LEH, JPM, BAC are all in essentially same boat. Even though everyone keeps talking about LEH as the next likely one to go, but only time will tell....
How high unemployment rate will raise in NY tri-state area....
One more possibility going to be .........how high unemployment going to raise in NYC tri-state area, given that Financial services industry is the bread and butter of this area.
Watch for SP1270.........
Last Tuesday, Bernanke's action jave saved 1270 level, we shall see whether that can saved this time. If this one goes then selling may get fast and furious. Since 1270 is the January low....
Good luck...........Tomorrow
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