The negative hits just keep on a-rollin’!
From MSN Money:
Things at Bear Stearns (BSC, news, msgs) were worse than anyone thought — and that realization sent shockwaves through the market this morning.
The financial services giant said it has received financing from the Federal Reserve Bank of New York — funneled through JPMorgan Chase (JPM, news, msgs) — to help boost liquidity. JPMorgan will be the conduit for Bear’s collateral and it won’t be held liable for any defaults, the New York Fed said this morning.
“Bear Stearns has been the subject of a multitude of market rumors regarding our liquidity. We have tried to confront and dispel these rumors and parse fact from fiction,” Chief Executive Officer Alan Schwartz said in a press release. “Nevertheless, amidst this market chatter, our liquidity position in the last 24 hours had significantly deteriorated. We took this important step to restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations.”
Earlier this week, Schwartz told CNBC that things at Bear Stearns were OK. my emphasis
Shares of Bear plunged a whopping $23.73, or 41.6%, to $33.27 in morning trading.
The DOW at exactly 11:30 AM today is trading down -183.26.
This, after an initial jump this morning to 12,193.61 from yesterday’s close of 12,145.74, or +47.87.
Oh well, the day is early. Perhaps another roller coaster ride in in the offing for this afternoon?
In other market news, Consumer Confidence is taking a dive once again.
Adding to market jitters today was a dismal report on consumer confidence.
The Reuters/University of Michigan survey on consumer confidence fell to a reading of 70.5 in March — down slightly from a reading of 70.8 in February and the lowest reading since February 1992.
“Consumer conditions have deteriorated dramatically since the end of last year,” said Lena Komileva, head of research at Tullett Prebon in London, to Bloomberg News. “A recessionary labor market, tighter lending, negative housing equity and a higher cost of living are bearing down on the consumer.”
Just remember. Presnit Bush sez we are NOT in a Recession! Its all just bad luck or something.
(I think I’m going to go with the “or something”, how about you)?
The Dow Jones Industrials closed down today -194.65 on further news of … well, the economy is doing pretty shitty. Including more Bear Stearns news.
A panicky day of selling ended Friday with investment bank Bear Stearns (BSC, news, msgs) likely to be sold and investors watching how the Federal Reserve and the federal government cope with continued stress in the financial markets.
The Dow Jones industrials finished the day down nearly 195 points, or 1.6%, to 11,951. The Standard & Poor’s 500 Index was down 27 points, or 2.1%, to 1288, and the Nasdaq Composite Index dropped 51 points or 2.3%, to 2,212.49.
The market tumbled on news reports that Bear Stearns had obtained financing from JPMorgan Chase and the Federal Reserve Bank of New York. Bear’s shares plunged, and major rating agencies cut their ratings on the stock.
Ever the optimist, I would suggest investing in digging a hole to China. If you can get there by early summer, the Summer Olympics are being held in Bejing and as an American, and a born-and-raised-capitalist, you should make a killing selling to the tourists.
I suggest selling the following:
o Pork and beans. Now that says America!
o Tube tops. Now that the Chinese have food, they have bosoms.
o Napkins. WE still have a few trees left.
o Spam. Of course they won’t eat it, but think of all the cans of it that they can shoot into space, recover 100 years from now and serve at the 2108 Little Rock, Arkansas Olympics! Its like a savings account for future generations of Chinese families.
o National Secrets. Wear sunglasses. Talk in whispers. Make shit up. Never smile. Until you are back on US soil, with the money. Then change your name and get the hell out of the US. BushCo will want a cut, and you know it.
Enjoy the weekend everyone!