Monday, March 24, 2008
Things just get curiouser and curiouser. Not only has JP Morgan managed to dig under the sofa cushions and find enough dimes to quadruple its bid for Bear Stearns....but the New York Fed has put its side of the deal (eg, the loans that guarantee some of the shite that Bear owns) into a SIV, of all things, to be managed by Blackrock. Sure, if things go belly up, JPM is on the hook.....for a whole $1 billion. Gee whillikers!
Will one be able to effect stock transactions through Fedbroker.com?
Will the Fed start offering consumer loans?
Will one be able to ring up Ben Bernanke and receive, Cramer style, a three word answer to investment queries?
Macro Man has a funny feeling about this one.....