...And the hits just keep on comin'. Should make for an interesting market watch tomorrow.

Amanda.

I find this utterly fascinating.  $2 a share.  Geez.  Chase has been my "go to mortgage company" for 15 years.  I hope they aren't going to drown in the swill that is Bear Stearns. 

98.8%!!  That's what I call a discount.

This deal should help stop people from fleeing Bear Sterns.  There is still a lot of value there.  A heck of a lot more than 2 bucks a share.

Who's next??? I guess anything to get the market back on it's feet.

At this juncture, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. - Fed chairman, Ben Bernanke, Congressional testimony, March, 2007

Hmmmm!!!!  I am confuuused.

Marilyn.  I agree.  I'm shocked at the price.  They must have had the Chapter 11 papers prepared and stuck them under the government's nose. 

Timothy.  I agree with you too.  We all agree that $2 a share is a bargain.  Bank of America, eat your heart out.

William.  This takes some real thinking.  I'm still stunned.

Kristi.  So far, every reassuring statement by the fed has been followed by some dramatic "rescue".

When it was Greenspan, we needed an interpreter.  With Bernanke, we need a lie detector. 

Lenn, I think you're right.  From what I've been told, they were preparing the bankruptcy papers, on Friday.

$2/share.

Government (we solvent taxpayers) guarantees JPM won't lose in the deal.

$30 billion Gubmint funding for less solvent Bear Stearns assets.

Derivatives traders betting on a 1 point Fed rate cut Tuesday.

Deal had to be announced before Asian Markets opened for Monday trading.

Fascinating times!

And, Lenn, BA may make out OK, if they walk and take the $160 Milllion that Countrywide had to promise for a no-close on the deal.

Same shake out in our business but this is on a grand scale in the money markets before the Monday opening. Wish I could invest my $8 bucks in this deal.

Not much help to the Asian markets..gold is up $28 dollars in the last hour or so.

Dollar is...oh, nevermind.

YIKES. 

Lenn.. your comment to Kristi is why I keep telling people that talk on the street about our economy, that it's not as bad... or this and or that, is just to curb fears in the market. But once stuff like this hits the fan, it shows reality, not government chit chat....  and people need to remember that we are in an election period. All I pay attention to is the real facts such as this and just for the fact that I am busy enough in the so-called down market.  And yes, this does seem like a steal, but I wouldn't put my money with any type of financial company right now, especially a company that is involved with mortgages.  Just my opinion. 

Just when you thought the news couldn't get any crazier.  $2 a share, totally amazing.

Lenn-We are closing on a short sale with Bear Stearns this month. What a great price for their stock. 

Someone will have to pull Jim Cramer off of the roof!  If an 800 pound gorilla like BStearns can feel the pinch-this could be trouble.

Lenn, Great post! Don't you just love the Irony in the whole thing?  In my opinion B of A and Countrywide deserve each other.

The big guys may be falling like rocks, but did you see the value of the US dollar.  It's TANKING.  Huge drop off as a result of this buy out last night on most indexes that show the value of our dollar against international currency.  Hope this isn't a trend.

Lenn, BofA may be eating their heart out a little.  CW's stock has fallen 50% since the buyout.  I wonder what the share holders are thinking at this moment. Here is an article about the CW buyout from the WSJ. About Bear Sterns, the Feds are hustling at the moment so there won't be a domino effect with a lot of the other large investment banks.  But, this is probably larger problem than what the feds can control.  I guess we will be on a roller coaster for a while.  AJ

   Don't you wish that for one time we could play in their sandbox?  These guys throw money around like it is grains of sand at one another.  I'm afraid this will not be the last.  "Meet the new boss..same as the old boss".

Lenn - good stuff. It's getting hard for even the 'experts' to sort out what's going on - how is the average schmo on the street supposed to react? Just when you think it's safe to start venturing back into the market, a big ole shark like this comes cruising by and scares the bejeezus out of you again.

I was going to buy a share of Bear Stearns, but then I wanted a large Snickers bar and a soda.