Well, Lehman is down a considerable amount today, but I haven’t heard anything about insolvency. If Lehman survives, I predict nothing worse than a worse than average recession as the housing market corrects itself. Aside: Since BSC is now trading under $5 a share, the company’s own internal guidelines prevent employees from buying or selling [...]
The last line from Krugman’s just published editorial: …things are falling apart as you read this. For finance wonks tomorrow will be a very interesting day. UPDATE: Some more fuel for the fire. And from the Washington Post: It took 85 years to build Bear Stearns and four days for it to dissolve.
Reflecting Bear Stearns’s dire straits, JPMorgan agreed to pay just $236 million for the firm, a figure that includes the price of Bear’s soaring headquarters on Madison Avenue in Manhattan. At $2 a share, JPMorgan is buying Bear Stearns for a third of the price at which the troubled firm went public in 1985. Only [...]
Well, on news of a bailout Bear Stearns stock has lost quite a bit of value. I’m glad I left when I did, though my reasons for leaving were not so much tactical as merely personal. On the day I announced my departure, I found out that the position I was currently in would cease [...]