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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: Cogito who wrote (5462)	3/16/2008 10:43:08 PM
From: tejek	Read Replies (1) \| Respond to of 20435

I may be just reacting emotionally, because I know a lot of people at Bear Stearns. It's a phenomenal collapse, though. There really hasn't been anything this big since Enron fell. And Enron wasn't a giant investment bank with a very long history, and counterparty agreements all over the world. BSC has been collapsing since last summer.....its at the epicenter of the subprime fiasco. For those who work on the Street, its not a big surprise.....the only surprise is that it took so long. BSC is not loved on the Street. Last summer a long term financial guy said that in the late 90s all the major brokers put together a plan to save one of the financial institutions involved in the Long Term Capital fiasco. BSC agreed with the rest but at the last minute, reneged on the deal. It was at that point the other brokers agreed that if ever BSC was in trouble, they would make sure it would be the end of BSC. And now you are seeing it play out.......BSC is worth far more than $2 per share but they are on their knees and backed up against a wall. They have no choice but to take JP Morgan's bid. This is the beginning of the bottom for the subprime mess. We should see a bank or two collapse and the feds get real serious about cleaning this mess up. Remember with every crisis comes opportunity. Right now, I am trying to figure out how to play this one.