According to some people, the Fed intervention to fund JP Morgan's takeover of Bear Stearns was necessary to prevent wholesale meltdown of the financial system. Landis82 said that JPM was the only entity capable of rescuing the company. Pabst said the Fed bailout was needed to save counterparties. Well, Bear Stearns stock is now trading at over $8, FOUR TIMES the proposed deal price. This only makes sense if i) the company is liquid after all or ii) someone else - WITHOUT Fed backing - is going to buy the company. No other scenario can explain the stock being four times the bid price. Have you ever heard of a proposed takeover where the stock went up 4 fold above the bid? A free market would not see that happen. In both scenarios, there is clearly no reason for a bailout. Someone in the market views Bear as viable as a going concern, and is willing to value the equity at $1 billion + and purchase the shares at $8 or higher. Therefore within 48 hours the Fed bailout has been incontrovertibly proven by the market to be completely unnecessary. What's more, with them backing such a low price of $2 per share, a 93% discount to the close price from Friday, and with JPM stock adding $12 billion of market cap on the announcement, the Fed has effectively conspired to assist an attempted $750 million stock fraud on BSC shareholders. The Fed has committed an incredibly irresponsible, immoral, and possibly criminal act by backing a rich investment bank in attempted railroading of a takeunder at a ludicrously undervalued price - the bid price was 80% below the value of Bear's office HQ building alone. JP Morgan effectively manipulated the Fed into assisting them in their attempted corporate theft. This has got to be the most corrupt deal and blackest mark in the entire history of the Federal Reserve. So, ET members - do not listen to the doom-mongers who told you BSC was a gonner and $2 was a fair price. If they backed their words with action, they would be short from $2.80 per share and holding a gigantic loser. I posted the truth yesterday and anyone who followed me is up over 100% in 24 hours. Don't let the Polyannas, socialists and doom-merchants stiff you out of your hard-earned risk capital.