Sunday, March 23, 2008

Bear Stearns Saga Continues

I have blogged on Bear Stearns before.

The above link indicates that JP Morgan bank is about to increase its offer to purchase the worthless firm of Bear Stearns by a factor of 5 times: from $2 to $10 per share, to pacify angry Bear Stearns shareholders.

The money JP Morgan is using to make this purchase is coming from the Federal Reserve System; for all intents and purposes, it's tax-payer money.

The shareholders and employees at Bear Stearns made countless billions of dollars when things were going their way. They did it by taking huge risks and leveraging their gambles to an unprecedented degree.

Things turned sour. There should be zero sympathy, let alone public money, for these guys.

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