Money woes as Bear Stearns shakes up the markets

Brokerage firm Bear Stearns has the nations full attention, after announcement of their deal with JP Morgan. The problem lies in Bear credit, as they have basically run out of short term lenders.

Here is a short list of some articles online, that discuss the recent Bear Stearn situation.

Bear Stearns' No. 1 foe: Fear itself
The brokerage firm says its fundamentals are intact, but can it survive a market panic?
By Roddy Boyd and Colin Barr

Hedge Fund Woes video from CNN Money

This big rescue may be just the beginning
By Tom Petruno,
Los Angeles Times Staff Writer
March 15, 2008
""We will lose, in some form, several major financial institutions before this is over," said veteran economist Allen Sinai of Decision Economics Inc. in New York.

The heart of the problem is that the nation is living through an unwinding of a 25-year-long, consumer-led borrowing binge. Bear Stearns was a key player in financing that binge, most notably in high-risk mortgages."

Bear Essentials
Wall Street Journal

Just once we'd like to see what would happen if a big bank did fail, but the current general market panic arguably isn't the best time to have that experiment. Presumably Bear will now be shopped to private buyers.

"President is on a different econmic planet"

Senator Chuck Schummer recently spoke out against President Bush economic speech, stating among other things that Bush is in a financial straight jacket. Bush spoke to The Economic Club of New York and acknowledged the "tough times", but presented a optimistic outlook for the nation's wallets. He expressed faith in the Fed and Congress being able to help steer the Bear Stearns crisis.

Housing prices plummet in SoCal

Southern California home prices still dropping at record rate
By Peter Y. Hong, Los Angeles Times Staff Writer
10:18 AM PDT, March 13, 2008

To get a clear picture on the housing market in Los Angeles, read this L.A. Times article which details the falling housing prices in the Southern California region. The numbers are undeniable, as the opening paragraph of the article lists a home which originally listed well over 300K, now up for grabs for a little over 160K.

The crunch is being felt nationwide, and seems to have a even tighter grip on Souther California residents. Many industry professionals warn of profit losses of up to 40% in local housing markets.

LA Times excerpt::

The median price for a Southland home last month was $408,000, down 17.6% from a year ago, according to DataQuick Information Systems. Area home prices have now fallen 19% on average from their peaks last year.

Give Me 5!

In case you didn't hear the news, the new five dollar bill has just hit the streets, with it's jazzy new color splash on the five! So if someone hands you one, don't worry. It's real! In case your not sure, hold the bill up to the light and you'll see two new watermarks and a new security thread.


Related links:

Video on the new $5 bill, which explains the new, more secure bill, found on The U.S. Bureau of Engraving and Printing's official web site.