On Mar 18, 4:10=A0am, CharlesLiu <chliu...@[EMAIL PROTECTED]
> wrote:
> On Mar 17, 8:34=A0am, baldeagle <botakea...@[EMAIL PROTECTED]
> wrote:
>
> > Bear Stearns bank is one of the two largest global investment banks,
> > securities trading and brokerage firms in the world. The other is
> > JPMorgan Chase.
>
> The fat cats @[EMAIL PROTECTED]
JPM is paying pittance for this deal, and US Tax payer
> is potentially on the hook for 30 BILLION dollars for this bailout.
>
> Compare this with the Regan era's junk bond bailout, which us US tax
> payers are likely still paying.
>
Being in the same business, JPMorgan Chase know
exactly what the bank's real worth is, US$2 a share.
If it did not buy over the bank, Bear Stearns woulld
have collapsed. closed and ceased to exist.....leaving
all its creditors with NOTHING.
Other banks and financial companies who gave loans
to Bear Stearns would have to write off their loans
and this could lead to more banks becoming insolvent...
massive bank closures.
The resulting effects would be like dominos....being
swept away by the subprime Tsunami.
With this bailout, the US government hope to stop
this bloodbath ....at least tem****arily.
One way or another, Americans will have eat the ****..
the excesses of last 10 years.... of living on borrowed
money and borrowed time. It is pay back time.
|
