Since when the U.S. Fed Cut Discount Rate 7:00pm EST Sunday Evening ?

[OAC 10]

Today JP Morgan bought Bear Stearn for $2.00 a share on a Sunday, tell me if I am wrong, I thought the stock was trading in the 20s last Friday ? And the Fed just cut discount on rate a Sunday evening.

Are we in the middle of a financial meltdown ?

[james_gsx 16]

I think things were a lot worse than we thought on Friday. Basically BSC is declaring bankruptcy - thus why they are being bought for $2 a share. As far as the rate cut goes, that tells me things are a lot worse than they appear. Not just the cut, but now they are allowing the loans to last for 6 months. But what do I know?

[Geomac 10]

Get the plungers out.

Gosh Shoulda let that BSC ride,covered Friday. Now 2--bucks wow. & @us taking off, Es tanking, cant even take the weekend off anymore. miss all the fun. Glad I bought gas saturday morning though. Let the games begin

[MrPaul 10]

This is getting pretty hairy

 

Fed:doh:USD:doh: stocks:doh: sub prime loans:doh:

 

 

 

BSC for $2 :doh:

[james_gsx 16]

This is getting pretty hairy

 

Fed:doh:USD:doh: stocks:doh: sub prime loans:doh:

 

 

 

BSC for $2 :doh:

 

:rofl::rofl::rofl:

 

Look at the bright side. When this mess is over with, there will be a TON of opportunities to become incredibly wealthy. I already have a few ideas of my own I love global markets.

[Sparrow 10]

BSC dropped from around 130-160 in august to 2, that's quite something.

Less impressive but still noteworthy, the euro gained about 15% on the dollar since october, also the swissy is now worth more than the dollar.

Edited March 17, 2008 by Sparrow

[james_gsx 16]

So this came up Thursday at the option addicts website...

 

I wonder who is going to jail now? :o

 

 

 

Take note of the price in the quote, then take note of the volume on the March 25 puts. Whoever bought those puts was betting on a HUGE drop in 8 days? Definitely fishy...

[torero 10]

There's one conclusion I can draw from all this mess: no matter how smart you are, what school you graduate from (esp. bragging rights at wall st.), in the end, we all succumb to greed; there's always someone who will outsmart you (rogue trader from SocGen in France). The worst thing of all is these guys command such large sums of money it's scary to think they're all dumb asses just like us. Sad indeed.

[Soultrader 12]

haha... nice one T. I know a guy in Bear Stearns... bought a house at the top of the bubble, now being bought by JP Morgan and possibility of losing his job. Dumb?

 

Found out about this news this morning Tokyo time. Was quite surprised.... so basically they had no money of their own but only its hedge fund clients? WTF???? Article here.

[torero 10]

Sad, only a year ago, it was worth 20$bil. Wow, these dumb asses sure knew how to increase the value of their company and their clients. So many economists in Wall St. and no one saw this coming... no one!!! Except Cramer!!! Scary!!!!

[james_gsx 16]

I saw these and couldn't resist. Very limited risk in a what will be a very volatile stock over the next week. If it doesn't work then I'm not out much, but could be a good trade on the reward side. BSC is up about $1 since I got in on this trade. I only bought 2 contracts because it's fairly risky, and in case it doesn't work out I don't want to lose my shirt. But hey, if it goes up and I make $100 then I'm good with that too.

 

[thrunner 10]

A bit of shadenfreude with Bear Sterns. Someone stucked a $2 bill to the entrance.

[Soultrader 12]

A bit of shadenfreude with Bear Sterns. Someone stucked a $2 bill to the entrance.

 

haha yea read that in Reuters. Apparently the entrance is also visited by real estate agents offering cheap apartments for Bear Stearns employees who just had their stock options go down the drain.

[james_gsx 16]

Well, I bought a few more BSC calls at 35 cents yesterday morning. Just sold everything today for a $754 profit. Not bad for only risking $210 or something like that.

 

[brownsfan019 17]

Well, I bought a few more BSC calls at 35 cents yesterday morning. Just sold everything today for a $754 profit. Not bad for only risking $210 or something like that.

 

 

Nice gamble ... er trade ... I mean.

 

Just don't get too cocky when this happens again, that's my only advice. It's easy to play the - if only - game when a similar situation comes up in the futures. And it will. Only next time the thing just might keep tanking.

 

So please just remember for what this was James - more of a gamble than anything. Trust me, speaking from experience. You always go light on the ones that pay off and heavy on the ones that fail miserably. Murphy's law in full effect there.

[james_gsx 16]

Oh I completely understand it was a gamble. In fact, I didn't even expect to make any money. That's why I immediately sold the second I saw the trade had worked in my favor. I could have held, and it would have been worth more. But by that point, I would be running off emotion and I would probably miss my opportunity to sell. It was a gamble, a risky one too. The only thing I had on my side was the risk/reward factor and the fact that someone could come in and make a higher bid (or a rumor, which is what happened). You should know that I'm probably one of the most conservative traders here, I learned my lesson last year after a few bad earnings calls. Hence why I only risked $200, I can stand losing $200.