Gothamist: Fed, JP Morgan, Bear Stearns Explain Deal

aydiosmio

Fri, 04 Apr 2008 14:13:29 -0500

If I make a mistake I hope the government is able to bail me out. Bankruptcy laws, medicaid, welfare, food stamps, grants, student loans... I'm sure we'll have some money for you.

Steven

Thu, 03 Apr 2008 21:42:41 -0500

If I make a mistake I hope the government is able to bail me out.

S.D.

Thu, 03 Apr 2008 20:56:40 -0500

"why they helped JP Morgan rescue Bear Stearns"? "Rescue"? Raid is more like it. What BS...

Bailout

Thu, 03 Apr 2008 18:14:02 -0500

It is a bailout because the fed are accepting $30 billion of toxic compromised securities that BSC could not sell without recording huge losses, and the fed are accepting the BSC march 1st "book value" for them. The treasury (us) are on the hook for the deficit on sale that will be recognized quarter by quarter over the next few years. Ben: I have a 17 year old rusty chevvy on blocks that due to an odd lack of "liquidity" nobody wants to buy from me for $12,000. I can't meet my bills this month and nobody will loan me money, here, take it as collateral, and give me $12,000! It is a bailout: in the case of JPM, a $29 billion dollar government bribe for them to take the company and untangle the mess rather than let chapter 11 do it, and in the case of the other broker/dealers, an open-ended rolling loan that takes securities that they cannot sell to anyone else without taking a loss.

TKaisen

Thu, 03 Apr 2008 17:47:49 -0500

Can someone explain to me how a "loan" is a "bailout"?

TimSPC

Thu, 03 Apr 2008 17:37:51 -0500

Old lawmakers? That's ageism!

Outter Burrougher

Thu, 03 Apr 2008 17:16:46 -0500

"Was this a justified rescue to prevent a systemic collapse of financial markets or a $30 billion taxpayer bailout for a Wall Street firm while people on Main Street struggle to pay their mortgages?" Is it possible that it was both? That yes, we needed to do something to keep the entire market house of cards from crashing down upon itself but that there are individuals that needed that money just as much. My father keeps talking about how it feels like the 1970's all over again... let's just hope it's not really the 1920's...

matty

Thu, 03 Apr 2008 17:01:28 -0500

So the deal was, we really liked the CEO, I mean, have you SEEN this guy play bridge? He could play bridge, I swear to God, all fucking day. He was a machine! Now, you tell me, how I was I going to let a guy like that go bankrupt?