HangingOnByAThread

Explaining the Bear Stearns Rescue

On second thought, I'd suspect JP Morgan will make a tremendous amount of money now that those CDOs will be revalued based on taxpayers dollars.

Explaining the Bear Stearns Rescue

The government has now put itself in a position to have to prop up home prices due to the risky assets now on it's books. It will undoubtedly let the air out slowly. While this has a positive side for the economy, it also means that home buyers will not get affordable home prices anytime soon and in fact will be purchasing a declining asset. Buyer beware if you were considering your new purchase an investment. Also, was laughable to hear Jamie Dimon of JP Morgan say that bankers will be taking a loss if mortgages are written down. That loss is negligible to the loss from the declining value of CDO's. They made a lot of money going up, and are now getting bailed out as they sell off assets prop'd up by the action Congress is surely to take.