More thoughts on the Gang of 4's killing of Bear Stearns

As was to be expected 3 of the Gang of 4 appeared before Congress' banking committee to justify the massacre of the investment banking house Bear Stearns on 16 March 2008. The apologia pro sua vita Geither and the toilet attendent Bernanke pleaded following the well worn scenario found in endless, idle chatter in the media. [The big enchilada anal hairstylist Hank Paulson was in Beijing, stroking the Chinese silken anal hairs for a big handout to help steady US financial markets!]. The real meat of testimony came from Alan Schwartz the beleagued CEO of Bear Stearns. It was hardly commented on. Jaime Dimon of JP Morgan who will devour Bear Stearns lock, stock, and barrel, had agreed to a loan of us$25bn for 28 days, thereby giving Bear breathing space to raise monies to stave off failure. This was on Friday 14 March, but on Sunday 16 March, he rang up to say it was not a 28 day loan but a 24 hour loan. At this point Schwartz threw in the towel for there was no way, he could in a day raise the money. As the 'New York Times Dealbook' [2 April 2008] reported, the anal hairstylist was on the telephone that weekend twisting arms to kill Bear Stearns, and he did out of rivalry or revenge for Jimmy Cayne's refusal to help bail out a hedge fund 10 years earlier, or as a way of tough love messages to the industry? or perhaps all three and many more motives yet to come to light. Rumour has it Goldman Sachs began bruiting stories about Bear's solvency, which spread like wild fire; traders began selling short...and we know the rest. Now the SEC are looking into insider trading charges and Schwartz spoke the obvious that had Bernanke opened the window of opportunity that he did for Lehman, Bear would still be in business. To put the nail in the coffin of Bernanke's disingenuous testimony, the SEC agree.
The Gang of 4 thought they had brokered a done deal, but have they without fallout. Hardly! The world markets shook within the very hour the toilet attendent announced the offering up on the altar of greed Bear Stearns, and in spite of the smoke and blue mirrors of Bernanke and the fancy braiding of anal hair by Paulson the markets remain fragile at best and we're now witnessing at roaring speed the US slipping into recession. More later...