Bear Stearns had closed $30.00 on Friday, after dropping almost 50% since it was running out of money. The dropped had seemed to have stabilized after Bear Stearns got an emergency injection of funds from the U.S. Federal Reserve through J.P. Morgan Chase. I guess $2.00 is better than nothing. Just ask people who had Enron stocks. For those curious minds, here is a chart of the stock price dating back to 86:
It looks like the subprime mortgage crisis may actually be a lot worse than what people have been willing to admit. Afer all the CEO had said on Wednesday that he was not aware of any imminent threat to Bear Stearns' liquidity. Oh how things had changed in just a couple of days. I wonder what he was smoking. More important, I wonder if Bear Stearns is just the first of many domino to fall. I certainly hope that's not the case.
No comments:
Post a Comment