NewB,
Bear Stearns has been bought for $2 per share by JP Morgan. This was announced on Sunday. On Friday it was trading at $20.
The US market will either be very good OR very bad this week. I'm not gambling one way or the other right now, here are the two arguments:
Bearish argument:
If Bear Stearns is only worth 1/10th of Friday's value - what does that say for other financial institutions in the US?
Bullish argument:
The Fed has injected another 200Billion of liquidity. This should allow hedge funds and banks to deleverage in an orderly manner over the next few months, thus avoiding another crash.
Joel
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