If you’re thinking of dipping your toes in the Bank Stocks wading pool today, think on this: While everyone else yesterday was gobbling chocolate rabbits and carving up Sunday hams, the suits and bean-counters at JPMorgan were sweating the details of their Bear Stearns bid. That $2 a share offer could mushroomto $10…or more.Why, after several days of frenzied, clandestine, late-night dealings, is the Fed balking at a better offer? Why, indeed--because it’s already agreed to back only $30 billion of Bear’s most skanky assets…with your tax dollars, by the way.
I was doing my taxes over the weekend, and I came to the screen where they ask whether I wanted to designate $3 to this or that cause. There were about four of them. So, why not put this question on the query page: Should your tax dollars be used to bail out the banks? In the words of Dr. Phil, "how's that going to work out for you?"
JP Morgan should beworried over public backlash to their deal…and perhaps Bear Sterns stockholders’ response should be, "let them eat Easter eggs."
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