Here’s some information provided by the Federal Reserve Bank of NY about the Bear Stearns bailout: The $29 billion credit extension is supported by assets that were valued at $30 billion by Bear Stearns, which valued the assets at market value on March 14. Oh, come on. If someone other than Bear Stearns was willing […]

I had a few posts in the past few weeks noting that whatever terms were announced for the Bear Stearns deal (and related deals), it was irrelevant, because in the end, the taxpayer would be footing the bill. The Fed’s M.O. so far has been to announce a little bit of help, then to announce […]

Yves Smith has a post about JPM’s buyout of Bear Stearns, that, coincidentally, says something that I was thinking when I woke up this morning. If I hadn’t read his post, I might have written something like this myself after letting it simmer for a bit: A hedge fund correspondent pointed us to an article […]

There seems to be a reluctance among many people to accept that the whole Bear Stearns thing constitutes a bailout. Let me try an analogy… Let’s say The Cactus Corp. sells squirrel carcasses as fillet mignon. After a few years, The Cactus Corp. is a strong business with a market cap of $150 million. Eventually, […]