It’s still early in the morning on the West Coast and haven’t checked the markets yet myself but went to the blog for Sitka Pacific, some excerpts about the bailout for Bear Stearn’s and the first emergency meeting over the weekend since about 60 years ago:
“It is a serious extension of putting the Federal Reserve’s balance sheet in harm’s way,” said Vincent Reinhart, former director of the Division of Monetary Affairs at the Fed…”That’s got to tell you the economy is in a pretty precarious state.”
“We learned that Bear Stearns’s balance sheet on close examination was worth a 10th of its market value,” said Reinhart.
And way down at the bottom, “Think all that debt on the books of Lehman (LEH), Morgan Stanley (MS), Goldman Sachs (GS), Citigroup (C), Merrill Lynch (MER), Bank of America (BAC), etc., is worth what is claimed? Think again. More revaluations are coming.”