Apparently the CPI has cooled down a little, remaining unchanged in February.
A second bit of news is that J.P. Morgan, in combination with the Federal Reserve Bank of New York, has agreed to provide secured financing to Bear Stearns. There’s more to this than meets the eye. Despite all the “positive” news, seemingly designed to combat further market slides, I feel that the downtrend will resume soon.
UPDATE
The headline of the day at Marketwatch is “Bear Stearns Bailout.” Bear Stearns screwed up royally. Their stock was over $170 over a year ago. Now its in the low 30s. This is all attributable to arrogance and an over-abundance of greed (don’t get me wrong, greed is good, but too much of anything is bad for you).
“Our liquidity position in the last 24 hours had significantly deteriorated,” Alan Schwartz, chief executive at Bear, said in a statement. “We took this important step to restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations.
“Bear Stearns has been the subject of a multitude of market rumors regarding our liquidity,” he added. “We have tried to confront and dispel these rumors and parse fact from fiction.”
Despite those efforts, Schwartz said “market chatter” had undermined Bear’s liquidity.
So blame it on those awful market rumors. What an silly and stupid a-hole!
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