Fear and Loathing
I think I am going to lay off the stock market for a while. The situation is getting truly ridiculous.
The fifth largest bank in the US, Bear Stearns, just collapsed. Essentially, the bank just called the US Federal on Monday saying: "Sorry, we are not going to open for business on Monday because the minute the door open, we are going to lose everything." Apparently, normal people have been pulling their money out of the bank in droves. Sensing a meltdown, the Feds immediately arranged for JP Morgan to buy over Bear Stearns at US$2 per share.
At its prime, Bear Stearns' market share is worth US$3.8 billion. Now, it is sold to J P Morgan at the basement/firesale/typical Myphosis/Great Singapore Sale/Garang Kuni price of US$236 million.
It is equivalent for a LV bag that costs S$3800 but is sold at S$236 instead. It shows how desperate is the situation at Bear Stearns.
How many more banks are in trouble? No one knows for sure. Perhaps our own local banks? The situation is not unthinkable.
It is time to follow our grandparents' example and put our money in biscuit tins and hide in the garden.
The fifth largest bank in the US, Bear Stearns, just collapsed. Essentially, the bank just called the US Federal on Monday saying: "Sorry, we are not going to open for business on Monday because the minute the door open, we are going to lose everything." Apparently, normal people have been pulling their money out of the bank in droves. Sensing a meltdown, the Feds immediately arranged for JP Morgan to buy over Bear Stearns at US$2 per share.
At its prime, Bear Stearns' market share is worth US$3.8 billion. Now, it is sold to J P Morgan at the basement/firesale/typical Myphosis/Great Singapore Sale/Garang Kuni price of US$236 million.
It is equivalent for a LV bag that costs S$3800 but is sold at S$236 instead. It shows how desperate is the situation at Bear Stearns.
How many more banks are in trouble? No one knows for sure. Perhaps our own local banks? The situation is not unthinkable.
It is time to follow our grandparents' example and put our money in biscuit tins and hide in the garden.
posted by Captain Obvious at 10:37 AM
1 Comments:
With US market going downhill at an alarming rate, France should be sending their LV bags to Sinapore. I am still waiting for BonBon.
But the fact that US is getting a huge quantities of these bags, it shows that the people are still buying.... but buying with what?
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