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Location: Pantego, Texas, United States

Monday, March 17, 2008

J. P. Morgan Chase is buying out the Investment Banker Bear Stearns for $236 million. Some say it is quite a steal, since Bear Stearns is said to have assets worth $7.7 billion, despite having a liquidity issue. Of course some bankruptcy lawyers may lose out if J. P. Morgan Chase makes the purchase. But other lawyers will be OK. The reason the price is so low is that J. P. Morgan is setting aside $6 billion to cover anticipated lawsuits. Apparently Bear Stearns did something questionable, otherwise why would so much money be allocated to settle expected lawsuits? I've been involved in some of class action suits after Wall Street manipulators pulled funny stuff. I didn't get much from the class action lawsuits, but the lawyers did very well. I predict that there will be some lawyers that become multi-millionaires as a result of the recent financial meltdown. The people who lost a lot of money, like me, will come out with some good experience. We now know that we can't trust anything the people on Wall Street tell us. That will have an effect on the markets for a few years. Some new laws will be passed. Then in a few years, no one will remember this, and the scammers will have figured out how to circumvent the new laws. Actually the Congressional Staffers who write the news laws will hire out to Wall Street to point out the holes they left in the laws.

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