This is extremely serious.Bearsterns is 5 th largest securities firm176 billion in securities ,42 billion in loans. what has happened is basically a modern day run on the bank. If fed had not bailed out then Sterns would have had to went into bankruptcy, This would force other banking systems to that have vested interest in bearsterns to pull what they could out of sterns and liquidate others. If bearsterns liquidated 176 billion assets it would flood market with securitiesandf drive market into a crash causing other firms to liquidate their securities and drive crash even furtherSuit said this would be the call for DEPRESSION JP is just a conduit that is being used by fed to funnel money into bearsterns. Bearsterns is illiquid, their assets are oversted, Fed will allow loan until sterns is able to get ahold of holdings, They have 176 billion in assets they can't sell, not only no one wants but can't flood market with securities Need a coordinated effort by world's entire central bankssaying they will support the bank assets. Fed alone cannot do it as this is bigger than the fed can handle, without monetizing problem which would just make it worse. Said we are at the peak of the problem, There is going to be more bank failures and central banks have got their work cut out for them, Bush gave a speach today in attempt to calm markets , If Centrsal banks don't get it right the freeze up of Kondraif's winter is here. We are running parallel RIGHT now with 1929. We are tipping on the precipise of TH GREATER GREAT DEPPRESSION. Scare the crap out of ya but it is what it is. I hope the central banks get it right. Suit on BNN said it has to happen in next 5 to 7 days...keep your ears and eyes open ...coswil
