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Why did we pay JP morgan to bail out Bear Stearns?

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posted on Apr, 3 2008 @ 03:58 PM
Just confused here. Why would we pay for JP Morgan to basically execute a corporate takeover of Bear Stearns when we could have just bailed them out directley?

posted on Apr, 3 2008 @ 04:09 PM

Originally posted by jdinaz
Just confused here. Why would we pay for JP Morgan to basically execute a corporate takeover of Bear Stearns when we could have just bailed them out directley?

HahAHa, Goods One, Just like the 9/11 Job...Magic and Illusion.

OIL prices aren't rising - the US dollar is plummeting!

Here we are (us, Americans), day after day, listening to the media tell us all about how "traders" are "trading" oil at ever higher prices because they're a-scared of this shortage or that disruption, or this crisis, or that air strike.

posted on Apr, 3 2008 @ 07:15 PM
The dirty secret is that the Fed and JPM had to take over BSC
because too much dirty laundry would be hung out in public view !!

The Fed and the Treasury (the Treasury in this area are the sipletons)
did not want to have exposed the real 'Losses' that are being swept
under the table for now...

consider that in an incredible 48 hours time
all the JP Morgan-Chase accountants---looked over ALL the swaps/derivatives/mortgage papers (on all 3 levels)and etc...
And decided that a corporation [Bear Stearns=BSC]
with a market cap of 139Million Shares @ $39.
=$54 Billion
was only actually worth a take out price of 139Million Shares @ $2.
=$2.7 Billion

[[ that is a reversed 18 - 1 ratio !!! ]]

Consider that 'BSC' was only the 5th largest financier/manipulator out there...
Then a reasonable team of financial minds would decide that
the-Crud-has-hit-the-fan.... and some massive cover-up needs implemented or the credit/central-bank system is dead-in-the-water

Until the overly wealthy decide not to throw their money at the problem in an effort to salvage at least some-of-their-wealth...

and by also supporting the B.S./manipulated via the PlungeProtectionTeam(PPT) 'markets' and the lying Fed/Gov't, GDP & CPI & Inflation numbers...fabricated for the masses consumption so that we are all 'Lulled' into a state of delusion...
which keeps the credit/fiat $ system running===

then the 'train-stays-on-the-tracks'...(which is only an illusion)

sweet dreams....

[edit on 3-4-2008 by St Udio]

posted on Apr, 4 2008 @ 02:17 PM
Its simple really...

JP Morgan's family happens to be one the owners of the Federal Reserve. They used their power in the Fed to bail out Bear Stearns so they could gain a financial windfall.

Its not like this is a new concept. Bankers have long used taxpayer money to profit. Look at the Federal Insurance we have for Banks. I believe theyre covered up to 100k. Nifty trick, the banks screw the pooch and the taxpayers cover the bill.

The bankers causes the bank panics of the Great Depression and then offered the solution...FDIC insurance at the taxpayer's expense.

And now the Bankers have caused the mortgage crisis and once again the solution is to give the Federal Reserve MORE power.

This is simply insane

posted on Apr, 17 2008 @ 08:57 PM
I came across a really interesting article about this story just a few minutes ago. If true it gives total lie to the Liquidity problem happening overnight basically. Also now that I think about it with a little hindsight, I don't think it is a coincidence that the Spitzer crash and burn happened just a few days before this.

Here's the link, it's not a site that I'm familiar with, I'm sure they have a bias but I haven't dug around that much to determine it.

Bear Stearns Buy-Out... 100% Fraud

But this scenario has enormous implications. It means that the deal was already arranged on March 10 or before.

posted on Apr, 17 2008 @ 09:02 PM
This is how the elite government bail out each other in tme of need at the expenses of the citizens of this nation and they don't even have to ask us permission to do as they wish.

Nothing but corruption of the worse ever been done in any nation.

posted on Apr, 17 2008 @ 10:27 PM
I have my own theory on this and tell me if I'm crazy. I don't know if anyone remembers Texas commerce bank but a basic rundown is this. Texas commerce merged with Chemical Banking cor. Chemical bank bought Chase Manhattan, then JP morgan bought chase ending up with JP morgan chase co. who as we all know bought bear stearns.

Now I know it says so in the wiki article but I think it is worth noting

Jeb Bush's career started with an entry level position in the international division of the Texas Commerce Bank, a job he received through James A. Baker, a long time family friend and chairman of the board. Bush assisted in drafting communications for the company's chairman, Ben Love. In November 1977 he was sent to the Venezuelan capital of Caracas to open a new operation for the bank. Bush spent about two years there, working in international finance. He eventually worked for the bank's executive program.J.P. Morgan acquired in 1987

Now I won't mention what I think he was heading down in Caracas Venezuela...

So anyways who had shares in bear stearns? For one, as of december 2007 Morgan Stanley - 5.37%. Well, it just so happens that one of morgan stanley's more notable former employees is Kevin warsh I doubt he still holds any bear stearns or morgan stanley though

So If you ask me when you have a man that is governing the federal reserve holding shares, deals are going to be made. JP morgan had no problems getting a loan from the fed to snatch up bear stearns. I personally feel that there are a lot more people that hold shares in both bear stearns and JP morgan. For them they knew of the collapse ahead. So why not sell everything you got in bear stearns (this was the run that brought it crashing to the ground) and buy into JP morgan where you already have shares. JP gets a loan that A. will never be payed back because after all it's the federal reserve, Americas money not theirs. "Well we really want to pay you back uncle sam we just can't because the market will crash if we do.. I hope you understand." B will get paid back because of the massive profits made when they get what was bear stearns back on their feet. Don't forget even foreclosed homes sit on land and that land can and will be worth a good bit sooner or later. It's a sweetheart deal for JP morgan and even the people in bear stearns that knew what was coming.

I also feel that (like many others have said) the federal reserved was buying silence for what goes on at the SEC and other Gov. organizations that are supposed to be there for oversight. Not much oversight when you have people with their hands in what they are overseeing.

Universal health care in the united states? Thats socialist!!
But It's cool that these people who knowingly took risks and failed get bailed out with our money.
Actually they aren't even taking risks anymore because the buddy system works so well, they are embezzling the working mans tax dollars at a rate that makes the welfare queens look cheap.

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