Gerry Canavan

the smartest kid on earth

Market Apocalypse

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Via Matt Yglesias and everywhere else, this is why I’m glad I have no money:

It’s just been announced that JP Morgan will buy Bear Stearns for $2 a share, implying a value of about $250 million. Given that the company headquarters is said to be worth about $1.2 billion, that gives the BS banking business a value of negative $1 billion. And that’s only after the Fed agreed to take on $30 billion worth of toxic waste from the BS portfolio, politely described as “less-liquid assets.”

Bear Stearns, Wall Street’s fifth-biggest investment bank, had opened at $60 a share on Thursday.

There’s much more at Huffington Post, MetaFilter, and elsewhere, including Alan Greenspan’s claim that this is the worst financial crisis since World War II. And he should know, he helped cause it.

Written by gerrycanavan

March 17, 2008 at 4:00 am

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