Great Economy?

Let the economy correct so that we can get over this problem. Bear Sterns took inappropriate risks and from the beginning of last week have lost about $7 billion in investor value. They announced their sale to JP Morgan Chase for $2 per share, even though it closed at $30 to end last week.

Did we forget to mention that JP Morgan Chase is making the purchase with the government funding $30 billion? Can you get $30 billion in funding for a company you drive into the ground by making bad decisions?

The Fed will provide special financing to JP Morgan Chase for the deal, JP Morgan Chase said. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets. Meanwhile, JP Morgan said it will guarantee all business -- such as trading and investment banking -- until Bear Stearns' shareholders approve the deal, which is expected to be completed during the second quarter. [Read]

(In case you a wondering, the money being used by the government has been taken from you--this is how it is used.)

As it has been said the Republicans use 9/11 to seize power, is it any different than the Democrats using natural market corrections to seize power?

We have all become slaves to a glorious and powerful master, and politics has become our religion.

posted at 21:02:39 on 03/16/08 by clearpolitics - Category: Economics - [Permalink]

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