The Fed appears to be pledging to do everything in its power to keep the credit crisis from destroying the financial industry and the economy. Policy makers at the central bank are expected to reduce the target fed funds rate - the rate banks charge each other for overnight loans - by at least a half-point on Tuesday, and perhaps even a full point.
Still, the market remained extremely volatile. The sale of Bear Stearns - and the fact that JPMorgan valued the fifth-largest Wall Street investment bank at a minuscule $2 a share, or $236 million - stirred fear among investors worldwide about other banks' exposure to the troubled credit markets.
This could get very serious Folks!
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4 comments:
You think Bush is ready to admit we are in the lastest recession since his daddy was in office?
How do you spell recession? B-U-S-H sux
The interesting thing is last thursday the CEO said the stock was worth $80 per share.
Now that is equity erosion
The assets were bought for $2 per share, but the share holders got screwed. This is how the elite operate. The deal has been backed by the Federal Reserve. The Fed is neither Federal, nor are there any reserves. They are printing money and destroying our economy. This is no accident. It is happening on purpose. They are eliminating the working class in America. If you own stocks in your retirement account . . . then, it is time to sell them. You will be better off making 2% in a money market account. The question is this: Are the money market accounts safe? Who knows the answer to this?
I always tell people who brag about having stocks that they aren't worth the paper they are written on until it's time to sell.
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