Money? Markets? Autoregressive heteroskedasticity? Ask me about it.
Whenever I run a blog, this happens. I don't get it updated on time.
Anyways, to start off, here's a presentation from JP Morgan about the "strategic rationales" for acquiring Bear Stearns. Questions obviously arise as to the motive of this acquisition: was it just a bail-out, or was it JPM looking to gain at least some human resources from Bear?
Some "almost-facts":
- Discounting the cost of infrastructure, Bear is essentially PAYING 1 billion for a bailout by JPM. It's obvious that the acquisition was not done of a purely profit motive.
- The Fed allowing security companies to borrow at a discount rate is motivated by JPM's acquisition.
- The market is really looking forward to a 100 bps cut soon .. in fact, its already probably priced in, barring that we don't decline further.
