Comments on: Bernanke is Going to Run Out of Bullets and Have to Throw the Gun http://www.dailyreckoning.com.au/bernanke-have-to-throw-the-gun/2008/03/18/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: John http://www.dailyreckoning.com.au/bernanke-have-to-throw-the-gun/2008/03/18/comment-page-1/#comment-12649 John Wed, 19 Mar 2008 16:11:24 +0000 http://www.dailyreckoning.com.au/bernanke-have-to-throw-the-gun/2008/03/18/#comment-12649 d-man, I meant that probably half their employees will get laid off if the M&A goes through with JP, which is clearly undesirable. If I was an employee, I would ovte against the deal and take my chances at bringing the company back up. And no, $2 a share is hardly a gift. $236 million for Bear Stearns? Are you kidding me? The case could be made that their customer portfolio alone would be worth more than that to JP Morgan. Once you throw in the fact that the Fed is taking on all the risk, you can then add in the values of all the cash flows and balance sheet items, IP, brand name, etc... you got yourself a multi-billion dollar company. This is a steal by JP Morgan negotiated in a backroom somewhere with probably a lot of money under the table to the other people involved. d-man,

I meant that probably half their employees will get laid off if the M&A goes through with JP, which is clearly undesirable. If I was an employee, I would ovte against the deal and take my chances at bringing the company back up. And no, $2 a share is hardly a gift. $236 million for Bear Stearns? Are you kidding me? The case could be made that their customer portfolio alone would be worth more than that to JP Morgan. Once you throw in the fact that the Fed is taking on all the risk, you can then add in the values of all the cash flows and balance sheet items, IP, brand name, etc... you got yourself a multi-billion dollar company. This is a steal by JP Morgan negotiated in a backroom somewhere with probably a lot of money under the table to the other people involved.

]]> By: d-man http://www.dailyreckoning.com.au/bernanke-have-to-throw-the-gun/2008/03/18/comment-page-1/#comment-12522 d-man Tue, 18 Mar 2008 20:11:48 +0000 http://www.dailyreckoning.com.au/bernanke-have-to-throw-the-gun/2008/03/18/#comment-12522 Employees getting screwed on the deal?? That's crazy... $2 a share is a gift they would otherwise not get extended. The firm is insolvent! By all rights, everyone should be getting the axe and the building sold to pay the final expenses. The same dotcom bust dignity any other bankrupt company would/should get... Employees getting screwed on the deal?? That's crazy... $2 a share is a gift they would otherwise not get extended. The firm is insolvent! By all rights, everyone should be getting the axe and the building sold to pay the final expenses. The same dotcom bust dignity any other bankrupt company would/should get...

]]> By: John http://www.dailyreckoning.com.au/bernanke-have-to-throw-the-gun/2008/03/18/comment-page-1/#comment-12508 John Tue, 18 Mar 2008 16:50:10 +0000 http://www.dailyreckoning.com.au/bernanke-have-to-throw-the-gun/2008/03/18/#comment-12508 Sounds like an expensive apartment... And yes, also a cheap Bear Stearns, but it seems like shareholders might end up rejecting the buyout. Employees own 30% stake, and they're getting screwed on the deal (major layoffs), and another stakeholder with 10% (forgot his name) already said he'd vote down the deal. A few more shareholders and they have majority vote. Oh, and yes Bernanke is running out of bullets. But as Peter Schiff explained on Glenn Beck yesterday, it doesn't really matter because they've been shooting blanks. Sounds like an expensive apartment... And yes, also a cheap Bear Stearns, but it seems like shareholders might end up rejecting the buyout. Employees own 30% stake, and they're getting screwed on the deal (major layoffs), and another stakeholder with 10% (forgot his name) already said he'd vote down the deal. A few more shareholders and they have majority vote.

Oh, and yes Bernanke is running out of bullets. But as Peter Schiff explained on Glenn Beck yesterday, it doesn't really matter because they've been shooting blanks.

]]>