Bear Stearns: How This DID Happen--And Will There Be More?

CNBC ^ | Pisani

[Toddsterpatriot]

That's very disappointing.

[nicmarlo]

The market also rallied before the Depression.

A recession is borne out by statistics after the fact.
The reality of a recession is brought out by anecdotal evidence, during the fact.

And statistics can show whatever someone wishes it to show....especially since .gov has altered how things are measured from time before.

[dollarbull]

Before fractional reserve lending we did not have boom and bust cycles.

The Fed is the 4th central bank of the US, and Europe has had them since the 17th century.

100% reserve requirements and a gold standard will stop the boom/bust cycle.

[1rudeboy]

Looks like I'll have to wait another day for my 30 pieces.

[nicmarlo]

Also, their own economic policies which seek to ensure that Japan does what is best for Japan and the Japanese.

It is also not attempting to become a world’s largest cesspool for those who have no desire to work hard or value education.

[palmer]

Are you telling me the Swiss stopped backing the Franc with gold so Franc could move in sync with Euro?

There are international agreements for central banks to dump gold, and the Swiss were part of that. But yes, partly because they can't afford to let their currency get too overvalued WRT the euro. There's a huge amount of day-to-day trade into Germany and France and it would kill Swiss manufacturers and merchants to let the Franc get too high.

[Cold Heat]

Gee! Lookie there!

Dow 12k+

LOL!

[palmer]

Sharp countertrend rallies will continue until the Fed is done lowering rates, then we will have a bottom and a bull market.

[palmer]

see 228

[nicmarlo]

Paulson speaking at 2:50pm....the market swings up.

[investigateworld]

The H-— with all this high finance stuff, I’m going prospecting for that there “Rhodium” stuff.

[palmer]

The rate cuts this time around have produced one day rallies, and his comments will do the same at best.

[nicmarlo]

They’ve been lowering rates and/or pulling out the puppets, it seems, almost every Monday since Memorial Day........soon they’ll run out of bullets to rally anything.

[nicmarlo]

oops....meant to say Martin Luther King Day....not Memorial Day.

[Aquamarine]

FOFLMAO! Buy Bear Stearns........it's now a real deal!!!

I will Nic, right after I fall off this turnip truck. :)

[palmer]

As BB said in his paper, once rates get to zero, he will start printing FRNs and buying T-Bills. He won’t be able to announce this in public, so he’ll have to figure out some other way to notify the rally monkeys.

[Cold Heat]

The fact is that everyone is just about as liquid as they are going to get. This worm is about to turn because like oil, it is largely based on fears. The additional liquidity will eventually overcome the trends.

There are some great bargains now, and the buyers are beginning to come back but it's hard to say when all the pain will be wrung out. But when it is, better not be holding a lot of expensive gold. That bling will be blowing chunks.

[palmer]

That’s what my chart shows, the key word is “eventually”.

[Cold Heat]

I'm thinking about getting back in. I'll bet that I'm not the only one....

The gloom and doomers from last night are losing today, and sooner or later the doomers will have blown their wads.

[palmer]

I’m thinking about getting more gold. The only lasting result of Greenspan’s rate dive was to reawaken that sleeping giant.