JPMorgan, Fed come to rescue of Bear Stearns

Derivatives as by the link they are considered to be the biggest black marget right now .

The fact is, derivatives have become the world's biggest "black market," exceeding the illicit traffic in stuff like arms, drugs, alcohol, gambling, cigarettes, stolen art and pirated movies. Why? Because like all black markets, derivatives are a perfect way of getting rich while avoiding taxes and government regulations. And in today's slowdown, plus a volatile global market, Wall Street knows derivatives remain a lucrative business.

This bubble is about to burst also.

www.marketwatch.com...

I wonder how many of this contracts has been worked out within the big financial institutions and foreign institutions without regulations.

Originally posted by HimWhoHathAnEar
reply to post by gottago

 

I'm not so sure JPM is clean. I did a quick search and found this connection to OTC Derivates, the weapons of mass destruction that stand at $516 Trillion Globally.

I think self preservation is the motive here.

Oh I agree with you there, its all just a question of degree. This is like going to a crack house to look for someone to run your AA program. Thing of it is they're all up to their eyeballs in these various ponzi schemes but some are bigger and more diversified than others, and JPM has Chase and a huge corporate and individual banking base. BS is/was primarily a go-for-the-jugular trading firm.

A friend used to trade derivatives for BS on the Amex out of school and would laugh about his work and say he was a glorified gambler, and that just like gamblers, the floor knew just two things, greed and fear. Well now you can smell the fear.

the market channels think their forecasts can create reality

i.e "proserity" or at least now create a more orderly fall

we should be thankful they lie as a matter of national security, they surely

could not be that stupid

the scary thing is the federal reserve notes i.e dollars are usually backed by treasury bills (the full faith of the u.s gov't)

now the fed is exchanging dollars for mortgage backed security's (200 billion worth) and yes these are just 28 day loans, but like all other loans, these will most likely be rolled over for another 28 days, indefinitely, so now a growing percentage of dollars are backed by the subprime housing crash...........get the picture

international bankers may be licking their lips wondering who needs to be loaned more money when more wars break out

ya strong dollar policy say this five times fast and at least 3 retard's watching tv will believe you....maybe this slows the dollars fall

more banks, hedge funds, and "pigmen" will need to be bailed out, and remember it was imperative that the news media did not talk about these going's on as a bailout, they fear the people's unrest should the truth be known in an election year, should people "get" the future nightmare and manipulative lies that are to be told, and the way their purchasing power and hard earned dollars are going to be sacrificed in the name of a organization (the fed) created by the investment banks i.e Jp morgan , Goldman sachs (which got control of the nations money thru secretive and manipulative means and then changed provisions after their agency was voted to power) .

a graveyard is where you should look if you want to know where you can soon find the dollar, probably other fiat's as well (even the EURO...oooh ahh) it's strengthening is only in relation to the dollar....look at the big picture and all fiat currecy's are devaluing at different rates....look at the rising price of gold in every currency that counter balances their fall. Every Fiat currency for thousands of years has been destoryed. Govt's attached at the hip to the bankster's willingly cast their currency's away to counter financial meltdown's which have occured thru history. The bliss of expansion and prosperity caused many to sigh anytime some "doom and gloomer" brought up the reality which awaits us. Now as the unwind begins and pain is being spread, more ears are willingly listening, as the blissful ignorance is evaporating.

the one hope is that after another 6 months of these bailout , that the fed will have taken care of all the "too big to fails" and then they can resume raising interest rates and that at that time we still have the world reserve currency in the united states, the problem is the consumer can't take on much more debt, so this may not make the most sense for the bankers



[edit on 14-3-2008 by cpdaman]

Here's the kicker,



Bear Stearns Companies Inc [NYSE: BSC]
is not one of the Federal Reserves' 20 Finacial Houses/Banks...
( eligible for loans etc...)


Bear Stearns is a private commercial investment bank,
BSC also deals in securities and dirivatives trading.
and has clearing house and brokerage operations. see company profile->
finance.yahoo.com...


The Federal Reserve had to ask JP Morgan Chase & Co. to intercede,
(JPM is one of the 20 'Primary Dealers' making up the US Federal Reserve cartel)
so as to make a Federal Reserve backed bailout possible...
otherwise this (soon to be formally private) corporation would face bankruptcy.

As it is working out, the Fed Reserve through JPM and under the justification that a BSC failure would be the first-domino of a
mortgage bond & derivative collapse throughout financial sector
(including the 20 Primary Dealers in the Fed cartel)
The Fed is actively, boldly, and without hesitation, is going to slice/dice/ or otherwise assimilate BSC as still another part of the 'empire'

many could rationalize, at least academically, this is fascism at work...
ostensibly 'for the good of the many'

reply to post by St Udio


Lo and behold this big Udio I would never had tough that they were private as like you said not for help for loans I always had the impression that they were a financial house.

No wonder JP Morgan is going to buy them out, this so corrupted is not funny, so if they bail them out then JP Morgan can use the help from the federal reserve to bail themselves out from the stress.

What a good example of how really our government and the corrupted corporate power are one and the same.

Okay so now the FED has dropped interest rates to 3.25% and may drop again on Tuesday. Don't burn your cash remember it can be used as toilet paper during the next Depression, when toliet paper cost $30.00 for a 12 pack of double ply

[edit on 16-3-2008 by whoreallyknows]

uk.news.yahoo.com...

NEW YORK (Reuters) - JPMorgan Chase & Co set a deal to buy stricken rival Bear Stearns for a rock-bottom price, while the U.S. Federal Reserve expanded lending to securities firms for the first time since the Great Depression to prop up the financial system.

JPMorgan is paying just $2 a share for Bear, or a total of $236 million, although the bank put a total $6 billion price tag on the deal including litigation and severance costs

why bail out the competition when you can just buy them when they are in trouble....

I feel bad for the employees of Bear Sterns. Today on GMA I saw them talkin how an employee who owned 200,000 in stock is now only worth 2,000 basicly

Derivatives are likely to bite JPM on the butt in a huge way in late 08 into 09...They are and have been one of the leading pushers of "esoteric" financial instruments the last 10 yrs or so...

This is going to ultimately be their downfall...They will not be able to withstand the avalanche, given a fair % of these transactions have JPM as it source...

If you think its bad now, wait till mid '09...

Me, I'm putting all my superannuation into cash first thing tomorrow

Peace

reply to post by Harlequin


If this isn't the work of the European Banksters a.k.a the NWO/Illuminati, I don't know what is...

It has the hallmarks of the way they operate all over it...Weaken a financial system and buy the stragglers and a very low price...Its a matter of who is next ?

They've been doing this for centuries