$60 a share to $2 in two days
Amazing how the CEO of Bear said a few days ago that they were not in trouble and now JP Morgan buys them for $2 a share. How bad is it out there and who is next?
It's all good. The cream will just rise to the top. Sort of like the tech wreck. A lot of these "great" firms live off the next "new thing"....the next structured product, the next derivative, the next uncontrolled hedge fund. Rather than just being good at managing money, they come up with more off-the-wall products and schemes to make a buck.
To me, there is no excuse for it. If all these firms are so "smart", and hire all these MBA's and PhD's and CFA's and XYZ's, they should have the mental capacity to understand risk a little better than they obviously did.
I bought it for my clients years ago at $35
We sold half of it at $140 last summer the clients wanted to keep half of it.
When the CEO said last week all is well I sold the rest of it at $53. I never trust a investment banker.