Macro perspectives on the Capital Markets, Economy, Geopolitics, Technology and Digital Media

Visit Big Picture

Betting on Bear's Bust

Posted on August 11, 2008

Today's most talked about article is likely to be this breathless Bloomberg piece on the demise of Bear Stearns: On March 11, the day the Federal Reserve attempted to shore up confidence in the credit markets with a $200 billion lending program that for the first time monetized Wall Street's devalued collateral, somebody else decided Bear Stearns Cos. was going to collapse.In a gambit with such low odds of success that traders question its legitimacy, someone wagered $1.7 million that Bear Stearns shares would suffer an unprecedented decline within days. Options specialists are convinced that ...

Original article link


blogs , data , federal reserve , program