Bear to Bear, Lehman to Lehman
Two years ago something unexpected happened:
“On March 14, 2008, the Federal Reserve Bank of New York, agreed to provide a $25 billion loan to Bear Stearns collateralized by free and clear assets from Bear Stearns in order to provide Bear Stearns the liquidity for up to 28 days that the market was refusing to provide. Apparently the Federal Reserve Bank of New York had a change of heart and told Bear Stearns that the 28 day loan was unavailable to them. The deal was then changed to where the NY FED would make a $30 billion loan to J.P. Morgan (collaterallised not by any J.P. Morgan assets but collaterallised by Bear Stearns Assets), who would buy Bear Stearns for 2 dollars per share. Two days later, on March 16, 2008, Bear Stearns signed a merger agreement with JP Morgan Chase in a stock swap worth $2 a share or less than 7 percent of Bear Stearns’ market value just two days before.”
—Bear Stearns, Wikipedia
Six months afterwards something shocking happened:
“On September 15, 2008, the firm filed for Chapter 11 bankruptcy protection following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies. The filing marked the largest bankruptcy in U.S. history.”
—Lehman Brothers, Wikipedia
Today something unexpected has happened :
“March 16 (Bloomberg) — Greece had the threat of a credit- rating cut lowered by Standard & Poor’s and European finance ministers adopted a bailout framework for the debt-stricken nation, spurring a rally in Greek bonds and the euro.”
—Greek Downgrade Threat Lowered by S&P as EU Paves Way for Aid, Blloomberg
With this action the Europeans ministers have opened the gates of hell on themselves.
I prophesy:
