(asian) Markets Tumble on Shock Fed Rate Cut, Bear Stearns

The price of gold is headed toward the moon, currently $1020 per ounce, and the value of the dollar is headed toward the abyss. The current financial situation is so grave that the outcome of the primary season could even be impacted IMO. We'll see where the dust settles by September. Maybe, the Federal Reserve can keep the lid on things through the general election. The pressure cooker is about to blow!
 
Fears That Bear Stearns’s Downfall May Spread

http://www.nytimes.com/2008/03/17/business/17econ.html


An Interesting note:

"In Washington, the Treasury secretary, Henry M. Paulson Jr., signaled strong support for the Fed’s role in supplying a lifeline to Bear Stearns during the crisis negotiations, saying that his priority was to stabilize the financial system and to worry less right now about the problem of avoiding a “moral hazard” by bailing out errant institutions."

In other words: Save the banks, let the taxpayer flip the bill.

This is out of control.

I smell bad bad things on the horizon
We have discussed them all.

September 2008....might be historical
Just a hunch.
 
PatriotG said:
In other words: Save the banks, let the taxpayer flip the bill.
Click to expand...

The banks aren't the only ones who will benefit.

Christmas 2006:
Bear Stearns' 3 top execs to sell shares
December 20, 2006

NEW YORK --Bear Stearns Cos. gave Chairman and Chief Executive James Cayne permission to sell $7.6 million of formerly restricted shares he received five years ago, according to a filing with the Securities and Exchange Commission.

Cayne, 72, will sell the 46,416 shares "from time to time," the filing said. He will still hold 6.19 million shares, or 5.2 percent of the company, after the sale.

The New York-based investment bank has not yet announced 2006 stock awards or other compensation for its executives. Bear Stearns earlier this week reported record income of $2.1 billion for fiscal 2006 ended Nov. 30, up 40 percent from the previous year.

Six other executives also got the go-ahead to sell formerly restricted shares granted in 2001. They are led by Presidents Alan Schwartz and Warren Spector, who can each sell 43,000 shares currently worth more than $7.2 million.

Bear Stearns also registered about 22,000 seasoned shares for Chief Financial Officer Samuel Molinaro; 19,000 for Treasurer Michael Minikes; more than 5,700 for Executive Committee Chairman and former CEO Alan Greenberg; and almost 2,100 for Controller Jeffrey Farber.

Shares of Bear Stearns, which are up 42 percent over the past 12 months, closed Wednesday up 73 cents at $165.32, on the New York Stock Exchange.

On Tuesday, New York-based Goldman Sachs Group set new compensation standards when it announced that Chairman and Chief Executive Officer Lloyd Blankfein received $54 million in cash, restricted stock and options for his 2006 performance. Earlier, New York-based Morgan Stanley said it awarded its top executive, John Mack, about $41 million in stock.

The awards come as Wall Street firms are reporting record-breaking years, led by Goldman's $9.54 billion of profit.
Click to expand...
Click to expand...
 
PatriotG said:
In other words: Save the banks, let the taxpayer flip the bill.
Click to expand...

The tax payers have been footing the bill for everything under the sun for so long, the politicians probably think we won't even notice this one....especially not with American Idol coming down to the finals. Let's see how important a TV show is when they can't afford to buy the electricity to power the TV.
 
1/4 rate cut! this is insanity! Where are the protest? where are the people revolting? This is sick...and can only be a deliberate attempt to destroy our econmony for some underhanded reason. Possibly to create a depression so as to have a reason to strart WW3 or widen the war in Iraq? what? why? Nobody with the most basic understanding of monetary functions can actually believe the fed is acting in our best interest. To stop inflation you raise rates, stop spending, stop printing...that simple, the market does the rest.
http://news.yahoo.com/s/ap/20080317/ap_on_go_ot/fed_credit_crisis
They are destroying my household income and my ability to feed my family.
 
The Fed so far has been completely ineffective at stopping any fall in the markets, and I don't expect that to change no matter how hard they try.
 
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