Bear Stearns, J.P.Morgan Chase, Connecting the Dots

It has been a very busy day for Bear Stearns Companies, Inc. Most of the time when an institution of this size is sold, it takes at the very least, 28 days. Not so in this case. One has to ask then, why all the hurry? What is so special in this case and what don’t they want us to know?

Well, you know me, I just start digging. One page leads to another, leads to another, one name after another, I just follow the links to see where things will take me.

In this case I started with Wikipedia on Bear Stearns Companies, Inc. Then opened a Wikipedia on J.P.Morgan Chase, Co. , which led me to the Central Banks page and from there a link to the Bank for International Settlements. Hmmmmmmmmmm, that was interesting. Besides one name in J.P.Morgan Chase, Co., I hadn’t found a single name recently. Until the Bank for International Settlements. Now that was interesting! Here they are!

Board of Directors

* Jean-Pierre Roth, Zürich (Chairman of the Board of Directors)
* Hans Tietmeyer, Frankfurt am Main (Vice-Chairman)
* Nout H E M Wellink, Amsterdam
* Axel Weber, Frankfurt am Main
* Mario Draghi, Rome
* Fabrizio Saccomanni, Rome
* David Dodge, Ottawa
* Toshihiko Fukui, Tokyo
* Timothy F Geithner, Federal Reserve Bank of New York
* Ben Bernanke, Federal Reserve Chairman, Washington DC
* Lord George, London
* Jean-Pierre Landau, Paris
* Christian Noyer, Paris
* Stefan Ingves, Stockholm
* Mervyn King, London
* Guy Quaden, Brussels
* Alfons Vicomte Verplaetse, Brussels
* Guillermo Ortiz Martínez, Mexico City
* Zhou Xiaochuan, Beijing
* Jean-Claude Trichet, Frankfurt am Main

Management

* General Manager: Malcolm D. Knight ([1]) (1 April 2003 -). Andrew Crockett (- 1 April 2003).

Now I know I’ve heard Ben Bernanke’s name mentioned in conjunction with Bushs. So I did a google search on that. Guess what? Bush nominated Bernanke to his current position. Wow, how convenient. And with J.P.Morgan Chase Co. comes, yup!, David Rockefeller! What a small world huh?

The Rockefellers have a long history of working towards a One World Government. For the past 40 years, give or take a few, this has been a major goal for them and many of the other super rich families in the world. A few days ago when Bear Stearns and Companies was simply in trouble I mentioned that it would be interesting to see who bought them out and whether they were an independent banking industry or not.

One extremely interesting fact to note is that Wikipedia is already current with the sell news of J.P.Morgan Chase Co. They have all the figures, etc. See here:

The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., which is one of the largest global investment banks and securities trading and brokerage firms in the world. The firm’s main businesses include capital markets (equities and fixed income), investment banking, wealth management, and prime brokerage clearing services.

Following a March 14, 2008 announcement that the firm required emergency financing from the Federal Reserve Bank of New York and JPMorgan Chase in order to avoid insolvency, Bear Stearns suffered a precipitous decline in value with its market capitalization dropping by 47%. On March 16, the firm agreed to be acquired by JPMorgan Chase for $236 million (approximately $2 per share, down from Friday, March 14 close of $30 a share).[2] Among Bear Stearns’ assets most desired by JPMorgan are its prime brokerage unit and the firm’s midtown Manhattan office tower.[3]

Now, I found this interesting in an article from CNN Money:

THE VIEW FROM WALL STREET: JPMorgan’s stock was up $3.51 to over $40. Conversely, Bear Stearns’ stock fell another $25.19 to $4.81 following Friday’s initial free-fall. Elsewhere among the the big Wall Street investment houses, Lehman Brothers Holdings lost about 20% to $31.10, following a decline of 15% Friday; Merrill Lynch and Morgan Stanley fell about 10% and Goldman Sachs Group slid about 8%. Citigroup shares fell about 6%. Investors are weighing both the value of financial stocks after Bear sold for only $2 a share – and whether the problems which brought down Bear can spread.

You see all these companies were heavy investors in our Candidates Campaigns. Oh, how the plot thickens! Money, money everywhere! Could this be a sign of just how displeased PEOPLE are with the way this country is? Could the economy have anything to do with this? Of course! Let’s connect the dots…..

We’ll start with the Great Depression. According to Wikipedia, (I love them for fast fact finding), the causes of the Great Depression are still much under speculation. We’ve been told that it was due to the stock market crash. Here:

Causes of the Great Depression
From Wikipedia, the free encyclopedia
Jump to: navigation, search

Causes of the Great Depression are still a matter of active debate among economists. The specific economic events that took place during the Great Depression have been studied thoroughly: a deflationary spiral forced dramatic falls in asset and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread poverty and unemployment. However, historians lack consensus in describing the causal relationship between various events and the role of government economic policy in causing or ameliorating the Depression. One popular theory is that the Depression was caused by the vast economic boom in the 1920’s, and that by the time the boom reached it’s peak in 1929, investors became fearful of their stock shares as markets expanded some focus to Europe, which still had nations that were economically damaged from World War I[1].

Monetarist explanations

In their 1963 book “A Monetary History of the United States, 1867-1960”, Milton Friedman and Anna Schwartz laid out their case for a different explanation of the Great Depression. After the Depression, the primary explanations of it tended to ignore the importance of money. However, in the monetarist view, the Depression was “in fact a tragic testimonial to the importance of monetary forces.”[7] In his view, the failure of the Federal Reserve to deal with the Depression was not a sign that monetary policy was impotent, but that the Federal Reserve exercised the wrong policies. They did not claim the Fed caused the depression, only that it failed to use policies that might have stopped a recession from turning into a depression.

Ben Bernanke, the now current Chairman of the Federal Reserve, later acknowledged that Friedman was right to blame the Federal Reserve for the Great Depression, saying on Nov. 8, 2002:

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.” [8]

Now why would Ben Bernanke admit this now? Very interesting don’t you think? And now, again, we have a situation where there has been a devaluation in interest, Real Estate has hit rock bottom, and the ripple effect has hit Bear Stearns and Companies, Inc. We are definitely NOT in a recession, but a depression.

Economists dispute how much weight to give the stock market crash of October 1929. According to Milton Friedman, “the stock market in 1929 played a role in the initial depression.” It clearly changed sentiment about and expectations of the future, shifting the outlook from very positive to negative, with a dampening effect on investment and entrepreneurship, but some feel that an increase in interest rates by the Federal government could have also caused the slow steps into the downturn towards the Great Depression.

Our comparisons lie between the market hitting rock bottom in 1929 and (2008) today’s housing market doing the same. It seems to me that the Federal Reserve wants more in the way of REAL property than they currently have. That’s not quite 80 years. Just my two cents……..

Now, from CNN Money.com we have this:

BEAR’S DEMISE: JPMorgan Sunday night announced it would purchase Bear for an astounding $2 a share or about $236 million. The investment giant had a stock market value of $20 billion in January 2007. The purchase also was only made after Federal Reserve agreed to accept as collateral up to $30 billion in Bear Stearns market positions.

THE FED STEPS IN: Almost simultaneously with the JPMorgan purchase, the Federal Reserve sought to increase liquidity to the credit-crunch seized financial markets.

The Fed lowered its discount rate by 25 basis points to 3.25%. It also opened up the discount rate to primary dealers and expanded the length of such loans to 90 days from 30 days. The Fed also significantly broadening the kind of securities it will accept as collateral.

TALK OF LAYOFFS: JPMorgan Chase & Co.’s takeover plans for Bear Stearns Cos. include cutting more than half of Bear’s 14,000-member staff, CNBC’s Charlie Gasparino reported Monday, citing sources at JPMorgan.

The layoffs are anticipated over the “next couple months,” Gasparino said.

So, once again jobs are being lost, and while it looks good having the interest rates cut, we already know that is bad for the economy. The dollar is at a record low in the markets! Notice that the banks are OK, but PEOPLE are not! It is the PEOPLE that will suffer, not those with money.

I also can’t help but notice that this is another Bush cronnie we have here in Ben Bernanke. If Bush can’t run his presidency, why should we think anyone he nominates can do any better job where they are? After all, haven’t we already seen results through Alberto Gonzales? It seems to me Congress should have seen this one coming a mile away. Others have.

downward-dollar-trend.gif

The graph shows the continual downward turn of the dollar for the past 6 years. Click on the graph to make it bigger. How bush managed this one is beyond me. But since he has such good business sense, I’d say there was a clue there. He has got to go before he does catastrophic damage to this society. How many more clues and fingers do we need to point before someone in Congress gets it?

Now, if the domino effect happens, Bear Stearns and Companies is only the first of many to go belly up. There will be many others, possibly JPMorgan Chase, Goldman Sachs Group, Merrill Lynch, Lehman Brothers, Morgan Stanley and others. Bush and his recession be damned, we are in trouble.

Advertisements

~ by justmytruth on March 19, 2008.

5 Responses to “Bear Stearns, J.P.Morgan Chase, Connecting the Dots”

  1. Excellent post. Just to let you that Jean-Claude Trichet, the second last on your list of the Bank for International Settlements is also the head of the European Central Bank. Eurpoes Fed, who keep in “guard” all the gold reserves of the Eurozone countries.But I’m sure it’s just a coincidence…

  2. Interesting. Nice thorough analysis whether I agree with every point or not it is more interesting than most things I read in the newspaper.

  3. […] Bear Stearns, J.P.Morgan Chase, Connecting the Dots Justmytruth’s Weblog Wow, Chuckie didn’t use the term liberal or democrat. He only implied liberal idealogy to be the cause, but then claimed it to be "nobel". Is this baby steps, or just more contradictory BS from Chan because it was done by those for whom his war drums beat? __________________ Instead of trying to build newer and bigger weapons of destruction, we should be thinking about getting more use out of the ones we already have. […]

  4. You are welcome. I’ll be checking the stuff out you left links to, thanks. Stop back by any time!

  5. Very interesting stuff, I was just researching the 1929 depression and how you can “Stack in front of you the biographies of all the Wall Street giants, J.P. Morgan, Joe F. Kennedy, J.D Rockefeller, Bernard Baruch, and you’ll find they all marvel at how they got out of the stock market and put their assets in gold just before the crash.

    Non mention a secret directive, since revealed, sent by the father of the Federal Reserve, Paul Warburg, warning of the coming collapse and depression.” (as quoted from “http://www.xat.org/xat/worldbank.html” in text, and “http://video.google.com/videoplay?docid=-515319560256183936” if you’ve got a couple hours to watch a video (it is a pretty fascinating video, though I haven’t done much fact checking on it yet)).

    I’ll keep an eye on your blog, so far it looks like good work. If you’re interested in a bit of an inside look at how the people who are really electing our officials are MINDLESSLY, and COMPLACENTLY, DESTROYING the Foundations of this Beautiful Country, check out http://www.wforrepublican.blogspot.com. Thanks, keep up the good work.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: