Friday, March 28, 2008

"Bear Stearns is Fine!" - Hilarious

As those who watched or read the news last week know, Bear Stearns, "one of the largest global investment banks and securities trading and brokerage firms in the world," was on the verge of a meltdown.1

Stearns was to become the next victim of the "credit squeeze," which has resulted from pervasive predatory lending by countless sub-prime mortgage lenders across America.

The investment banking giant was bailed out by the FED, the US federal bank. The FED in a plan to help JP Morgan Chase, once Bear Stearn's greatest competitor, acquire Bear Stearns, offered to buy up to 29 billion dollars of its debt if necessary.2

In fact, yesterday, in a sign that hope for an upswing in Bear Stearn's stock value is at abysmal levels, James Cayne, Chairman of Bear Stearns Cos Inc., sold "5.66 million shares" worth a total of "$61.3 million."3

If the captain abandons the ship, things are most certainly not good.

However, perhaps the most abysmal, and illustrative, part of this story is that just one year ago, Cayne could have sold the same amount of stock for "about $1 billion."4

He must be livid.

And who did this dreadful financial development surprise the most (other than Cayne)?

Watch the clip below to find out (and to have a good laugh):

Jim Cramer: "Bear Stearns is Fine!" Tues, 3/11/08

4 see footnote 3

No comments: