Financial troubles in major U.S. banks
U.S. banking system in trouble.
Investment banks can now access Fed credit.
Bear Stearns were claiming that they were solvent.
Share prices were $80.00 last month, $70.00 early last week, closed Friday at $30.00.
Bear Stearns haven't enough reserves to continue.
Several billion of credit allowed to J P Morgan Chase over the weekend to bail our Bear Stearns Investment Bank.
J P Morgan are buying Bear Stearns ... shareholders are to get $2.00 for each share.
I think that they said that the Fed has reduced the intrest rate another 0.25% ... and that they expect that there will be another reduction in rate early in the week.
More fallout from the lousy mortgage issuing troubles over recent years.
With all of the foreclosures in progress, and with almost a certainty that there will be a tight mortgage market for some time, likely housing prices will not see bottom for a while.
World stock markets down overnight.
Early trading in the Dow down about 200 points.
That Canadian bank that I've been complaining about, with share prices about $62.50 a week ago?
Closed under $60.00 on Friday ... down just under 45%.
Keep your money in your jeans for a few days, I think, folks.
Hope you have a reasonably happy late-winter week, everyone.