Tag: US economy

Another Day, Another Market Downer – UPDATED (7:45 PM)

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.


What goes up must…. Wall St. sinks at the open

Weak economic reports and record prices for oil and gold are causing investors to move out of stocks this morning.

As I mentioned in my last essay, I was moving my money after Tuesday’s 417 point gain out of riskier investments and into safer plays such as bonds.  One can never time the market, but if you have been paying attention, the handwriting was on the wall, and now it the time, imho.

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