Funny thing that the Bear CEO was on CNBC just Tuesday claiming that there was no truth to the rumors we have been hearing for several weeks about insolvency and illiquidity (and also claiming that there was no truth to statements that hedge funds, Goldman, etc. were making Bear trades go through manager approval). Has a crime been committed?

It was also nice to see that the a-hole did the Tuesday interview from West Palm Beach. His company was dying, the vultures were circling, and the jackass wasn't even in Manhattan?

The Fed sure has been generous with JPMorgan in these deals. Friday brought unlimited unsecured non-recourse loans to JPMorgan who could then lend to Bear Stearns in secured credit facilities (instant super seniority). This gave JPMorgan the legal right to loot Bear. Now comes this.

I can't wait to see the Red Herring this week. Maybe the rate cut on Tuesday will be enough for this week.

It seems nobody liked this news. As I write this gold is up 2%, the Nikkei is down 4% and Hong Kong is down almost 5%. The dollar is free fall against everything. The S&P futures are actually racing the dollar down. They are down about 2.7%.

I guess it really does beg the question - If Bear is really only worth $2.00 a share, can the other banks be worth anything?

Tomorrow will be exciting!

SunTzu

According to gurufocus.com & finance.yahoo.com Bill Miller lost roughly $500 million on BSC.