Had the takeover been at $33 instead of $2 would the market be down much tonight if at all? I think the $2 takeover price startled the market. But if you think about it, the takeover price is pretty irrelevant except for BSC and JPM. JPM is getting a better deal than people expected. BSC a worse one. If it is true that had the deal been done at $33 that the market would be stable tonight, then all the selling is quite irrational and will be reversed at a later. BSC just as much a gonner tonight as on friday.
"If Grandma had balls, she'd be Grandpa" Really stupid thought process there. The $2 price just shows what kind of crap these financial are really in. If you're sitting with a portfolio of financial stocks, you really want to see who's next? Or do you start a wholesale liquidation tommorrow morning. Managing money is about managing risk. At this point after seeing BSC you have to assume that the risk in every financial is a total loss.
If all was well with the market there's no way BSC would have sold out for $2. Money wise it's a transaction between two parties without a big effect on anyone else, but information wise, everyone just learned something bad they didn't know a day ago.
Yes, exactly.....$2.... cheaper then a whore...scared the hell out of the elite.....you have to expect big troble across the industry
And just think of how great the market would be doing if they did the deal at 100 bucks? This thread is a total moot point since the price is 2 bucks.
The point is, if the reason why market players have conviction to short the markets into oblivian is because a bankrupt firm was taken over at $2 instead of the $33 they feared...then the selling is emotional and thus likely not sustainable. That said, this is looking more and more like black monday.