Thoughts on BS (bear stearns) ???

BS (Bear Stearns) Intervention or No?

Does anybody have any thoughts on this kind of government intervention into financial markets? Here's a couple clips of the story with link below:
i don't know

"NEW YORK - Wall Street ended a temperamental session widely mixed Monday after investors grappled with JPMorgan Chase & Co.'s government-backed buyout of the stricken investment bank Bear Stearns Cos."

"The buyout of Bear Stearns was certainly more appealing than the alternative: letting the investment bank collapse and causing huge losses for anyone linked to it. And some unprecedented moves by the Federal Reserve gave investors a bit of solace on what many predicted would be a day of precipitous losses in the stock market.

Besides supporting the buyout, the Fed lowered the rate it charges to loan directly to banks by a quarter-point on Sunday night — two days before its scheduled meeting Tuesday. The central bank also set up a lending option for firms, including many non-bank financial services firms, to secure short-term loans for a broad range of collateral.

The Fed appears to be pledging to do everything in its power to keep the credit crisis from decimating the financial industry and the economy. Policy makers at the central bank are expected to reduce the target fed funds rate — the rate banks charge each other for overnight loans — by at least a half-point on Tuesday, and perhaps even a full point."

To start the comments rolling I just received this response from my favorite lender--feel free to contact me asking why:

BS (good abbreviation) was one of the two biggest bond creators (the other being XXXX) who facilitated the proliferation of Non-Prime, or Sub-Prime bonds labled AAA when they only contained approx 11% full doc (income assets verified) loans. BS was destined to be hung up in world and US courts for years for the packing and labeling of these instrumants to countries, pension funds, insurance companies, and everyone who holds mutual funds and money market accounts.

Good idea for govt to step in, only because it could have created a run on bank and investment bank deposits. It is hard to label this a bailout when the BS stockholders lost over $150 per share in one year. It is punishment for corporate misdeeds. XXXX will be next, and then there will be others. But, probably they do not deserve to be in business. They created markets that would not have existed - no one would have invested in instruments labled accurately - 100% LTV, stated income, interest only, adjustable rates, stated assets, 580 credit score. Loan out to people with no ability to repay.

This would be the equivalent to a realtor selling a home advertised as 5br, custom built new home, and selling the people a brick ranch tear down without any repercussions to you, your company, or your license to operate. This will go down as the biggest bank robbery in the history of the world....

Scott Hardy, Sr. Branch Manager CMPS
Mortgage Banker | Equity Strategist | Dad
Flagstar Bank | Northern Virginia & all 50 States
[for email address contact me] | www.HomeLoansForLife.com
8001 Braddock Road, Suite 101 | Springfield, VA 22151
Direct-703.426.6973 Mobile-703.856.7641 e-fax-888.314.2844

Related Links: