Fed is expected to cut interest rate to 2.25% : Wall Street Journal

Bear Sterns has been wipe out from the markets today, the bail out is for the financial sector that will definitely be feeling the pain.

But the investors are no going to gain anything.

The speculations and scare in the Markets is about who will be next.

The markets were wayy down at the opening but are now positive again just as I figured. Something is out there skewing with the markets in volatile situations like this. There would be no logical reason why anyone sane would buy today yet they seem to be doing just that. With all the poison firms who are wrapped up in this mess and all the backlash that other corporations will feel from this mess now just doesn't seem to me to be a good time to buy but yet they are. For all intents and purposes the markets should be wayyy down now, yet they aren't...

reply to post by Escrotumus


The thing is, this is a fixable situation. I believe it will be near-fixed or totally fixed once China stops keeping their currency artificially cheap and removes their tariffs. I think people see the light at the end of the tunnel.

reply to post by Escrotumus




What we are seeing...

Is the PPT (Plunge Protection Team) in action.. since Friday after hour trading has been -200 negative.. right at the opening bell, it shoots to positive.. based on the same news that caused it to tank to begin with. Just consider it another Federal Bailout

Well it seems that the investors of bear stern are starting to call their lawyers to find ways to sue the financial firm as their investments are been wipe out.

reply to post by marg6043


Sue?

Why?

I mean.. it was a legal transaction.

No warning, so no one could dump their stock.. but I mean, we don't want to incite panic and have all the money flow out of the corporation right as another corporation is about to aquire all of its assets.. I mean, that would make no sense to JP Morgan who would in turn loose billions in lost assets..

And over the weekend, hell, whats wrong with that? Take people by surprise, and ensuring that the market being closed will have limited reactions to it.. When I walked into my office today, mad as hell, NO ONE knew about the situation ... and mind you, I work with investors.. and no one cared until I told them the most secure mutual funds are funded by financial isntitutions, under the promise "they will always be there" ..... some people will be having a bad day when they see their IRA's and 401(k)'s lost a chunk of money invested in Sterns...

And why sue.. I mean, it was the FEDERAL reserve that sped the process through, quickly, and even aided JP Morgan 30 BILLION Dollars to esnure funding to the billions in assets being acquired.. regardless of the fact that JP Morgan is the biggest bank within the Federal Reserve, it bought Sterns whole sale for a fraction of its value.. consolidation of wealth and power all by the good graces of a mock entity flouting the name Federal in its title so the moronic public will remain clueless....

Federal fraud. Nothing illegal about it... at least, when the law makers are breaking the law..

foreign markets are making money off the falling value, rich get richer, blame being thrown to housing markets, immigrants and foreigners... HMMM

Why does this all sound familiar?

Weimar Germany-

anyone???

reply to post by Rockpuck


Sue because all last week the CEO was on TV talking about how everything was fine meanwhile the stock was tanking. What the CEO did was illegal and I hope he gets punished. Yes lawsuits will be flying and legitimately so.

Its the same crap Enron pulled before they went under their propaganda machines where telling the little people everything is fine meanwhile the big boys were getting the hell out.

Hope that answers your question.

Oh wait I just read the whole thread sense some sarcasm

[edit on 17-3-2008 by mybigunit]

reply to post by acegotflows


Rich get richer... well yes. Unless your a man who had invested 1billion dollars in Bear Sterns, got caught with your pants down and lost 50% of your entire net worth...

Typically.. its the rich who loose the biggest in market collapses.. remember 1929 and investors killing themselves after loosing their wealth..

Of course, anything has ripples, and it will always effect the bottom rungs of society.. and a select few in the oligarchy will always make out...

I often wonder.. what happened to the days when the public could identify the frauds...

And we hung them in the streets.

reply to post by Rockpuck


Well it will be only the small investor the one doing the killing because the big fat cats have their money very well guarded.

And for the buy out by JP . . . well . . . is a window of opportunity here in which the Bear Stern can get a turn around after the "rumors of buying out" and turn the deal off.

ok let me rephrase. The ones who control the investing rule, and the investors themselves are holding the tab.

the wealthy, those 10% or so who control 90 whatever % of everything...

reply to post by marg6043


The Federal Reserve has told Stearns quite clearly.... your being sold. If not, they have a high risk of bankrupcy.. which would kill the markets and generate further uncertainty or panic..

And .. I understand there is a lot of hate towards "the rich" .. But there is a huge difference between rich and.... super powerful. There is an oligarchy.. but its not every single rich person.. if it was, the second largest share holder in Stearns would not have lost 1 billion dollars in stock..

its not 10% of the population that is "the bad guy" here.. its maybe .01% of the population.

reply to post by Rockpuck


Bear Stern is privately owned the FED can suggest the buy out but is up to the share holders to approved the deal.

Now, this no going to happen intil June, so a lot of things can happen from now to June.

reply to post by marg6043


Its Publicly owned.. and the Fed can .. imply that it "would be in your best intrest" to do such a thing.. Pressure.. you know? ..

And if they back out of the contract which they are already begining.. there would be several hundred to billions of dollars in legal fees paid to JP Morgan.. more then what the buy out was even worth.

Tell me Marge why a company like Bear Stearns would sell out.. so fast anyways, to one of its biggest rivals?

reply to post by Rockpuck


Well out of desperation occurs, but why did they waited this long knowing that they were going to have financial troubles, why did they lie to their own investors?

And again who is to say that more of the big financial institutions will face the same future as more of the write outs are still in the air.

reply to post by marg6043


Depserate? No...

$2 a share is not desperate.. its... stupid. A 20% deduction is desperate.. not 90% reduction ..

Its essentially giving the entire company away for free..

I cannot imagine why a company would do that.. many papers are calling it a "fire sale" .. which means sudden and complete sale at almost no cost..

There HAD to have been some back screen planning with the Fed.. as the Fed is pratically funding JP's aquisition of Stearns.

Markets have been flat all day, almost like they were programmed. This reaks of the PPT.

reply to post by Escrotumus


Looking at the chart above... ya.. extreme spikes up and down.. So I would have to agree with you, or perhaps stand by my early morning comment.. the PPT will not allow the market to fall after a big move like on Sunday..

Just as I said in an earlier post that on a day where the markets should have tanked they end 90 points up. Right now we are 90 points up on a day that should have seen a mild catastrophe of at least -5%. Either there is subtle market manipulation here or some stupid people think this is the bottom.

reply to post by Escrotumus


Every index is down .5 to 1% .. and the DOW is up .8% ..

Unusual.