– Alan Greenspan, ex president of FED declares in a Financial Times article that the present financial crises is the biggest one after the World W II.
– On the new flux just saw that Bear Stearns stocks dropped with most than 55% and will be bought by JP Morgan with only 2 dollars per action !
JPMorgan Chase agreed to buy Bear Stearns for $2 a share, a 93 per cent discount to Friday’s closing price, and agreed to take on up to €30bn of Bear’s mortgage-backed securities.
The move came as the Federal Reserve announced it was cutting the discount rate at which it lends to banks by 25 basis points to 3.25 per cent, and opening up its discount window to 90 days from 30 days.
I stand by my “chinese” theory.