Bear Stearns may be worth More after all, stocks surge

Bear Stearns stock may be worth more after all. JPMorgan ups its bid for Bear stock to $10 per share. The net effect on the stock market has been a nearly 200 point rally in the stock market. So my question is are we in a recession or an inflationary period or can you have both. The experts say that we are in a recession yet interest rates keeps rising. I don't get it. Can anyone shed some light on this?

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Bear Stearns bailout causes Stocks to Tank

Bear Stearns which is one of the biggest financial services company has received interim financing from the Federal Reserve Bank of New York to help boost liquidity. The share price of Bear Sterns stock plunged over $23 a share to $33.78.

Bear said it was talking with JPMorgan Chase about permanent financing and other solutions. I think that this should raise an eyebrow as to the liquidity of other banks that were heavily into mortgage back securities. Hopefully we are nearing the end of the subprime loan issues.

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