The wolves have taken down a bear, and now the lead dog gets the largest share of the kill.
JPMorgan Chase & Co. suddenly has enough money to buy Bear Stearns, at $2/share. It is an incredible deal considering how cautious JPMorgan has been in this crisis.
Bear Sterns (NYSE:BSC) traded at $172 a share on January 17, 2007.
Now it is easy to see why the US Federal Reserve is deliberately steering the economy into a deep recession. Rich bankers doing a little market consolidation on the backs of U.S. taxpayers.
Citigroup, Inc. was essentially handed over to Abu Dhabi Investment Authority. It is ironic that the sheiks may do a better job at handling the money than Sandy Weill, a Brooklyn Jew. The world turns.
Expect a few more banks, and their stock prices, to plummet in the days ahead. There are predators just waiting to make a kill.
My surviving strong U.S. market plays include the Van Eck Steel Fund (SLX) and of course, Apple, Inc.. Apple announces April 23 at 1700 EDT.
I sold all shares in U.S. financial firms in 2007. I do hold ITU and BBD in Brazil, Bank of Muscat, Commercial Bank of Qatar, Savings Bank of the Russian Federation (Sberbank), and ICICI Bank out of Mumbai.