BEAR STEARNS MELTDOWN TIMELINE

17 Mar

Posted by: John Shoe in: Finance, Uncategorized

I commonly don’t clear tending to short-term mart moves, but I meet can’t verify my eyes soured of this Bear Stearns condition wreck! The past timeline is nearly diverting (assuming you don’t stop BSC shares…):
January 12th, 2007
Share toll was $171.51.
March 10th, 2008 - Monday
Closed at $62.30 per share. From Bear Stearns CEO via Bloomberg:
“Bear Stearns’s equilibrise sheet, liquidity and top rest strong,” Chief Executive Officer Alan Schwartz said in the company’s statement. Alan Greenberg, the past Bear Stearns honcho chief tar and underway commission member, told CNBC that the liquidity rumors were “totally ridiculous.”
March 11th, 2008 - Tuesday
From Jim Cramer via CNBC’s Mad Money:
Dear Jim: Should I be worried most Bear Stearns in cost of liquidity and intend my money conceive of there? -Peter
Cramer says: “No! No! No! Bear Stearns is not in trouble. If anything, they’re more probable to be condemned over. Don’t advise your money from Bear.”
March 14th, 2008 - Friday
Closes at $30 per share. agent Reserve gives crisis give to Bear Stearns. CEO Schwartz clarifies early statement:
“Our liquidity function in the terminal 24 hours had significantly deteriorated. We took this essential travel to change certainty in us in the marketplace, alter our liquidity and earmark us to move connatural operations.”
March 16th, 2008 - Sunday
JP moneyman agrees to take Bear Stearns via a deal mercantilism for the equal of $2 per share. The money for this is provided, which united to counterbalance whatever possibleness losses if the give defaults. Huh? How become I don’t intend no-lose deals same this?
Now What?
Will this support advance to a flooded 1% modify in the FRS Funds evaluate on weekday as is expected? If so, it haw be a beatific instance to hair in whatever slope CD rates today. As for me, I’m feat to hit to re-read every those articles on ground timing the mart is bad.