Sunday, March 16, 2008

Stock Market Fears Grounded in a Stark Reality

Last week it was a $70 stock; today it was purchased by JPM for $2 a share. That is how quickly things unraveled for Bear Stearns (BSC). In the face of such utter annihilation of wealth, it's understandable that markets are fearful and volatile to start the week. Note that the VIX is once again above 30, on track to spike higher should the overnight weakness spill over to tomorrow's trading session.