If you’ve not read Daniel Henninger’s column in the October 2, 2008 edition of The Wall Street Journal, I encourage you to.  In this column, Mr. Henninger defines the term “moral hazard”, particularly as it relates to Wall Street, Fannie Mae and Freddie Mac, and Congress.  He writes:
Borrowers across America took a dive for low- [...]

As more than a casual observer of the recent economic and business events of the last two weekends, it occurs to me that the age-old adage “Pigs get fat, hogs get slaughtered” applies here.  It is truly regrettable that such venerable institutions as Bear Stearns, Merrill Lynch, and Lehman Brothers are no more.  Thousands of [...]

This morning brought news of a refinement of the JPMorgan/Bear Stearns deal. Evidently, Bear Stearns stockholders aren’t happy about the $2/share deal, and want something better. Wouldn’t we all.
What will be interesting is whether the Fed accepts the deal or not. I favored the original deal, but the new deal appears to [...]

JPMorgan Chase appears close to closing the deal to acquire Bear Stearns. The arrangement, just 2 days after Bear Stearns stock price dropped 46% in a single trading session, would value the teetering financial services company at about $236 million ($2 per share). The closing price on Bear Stearns stock was $30.85 on [...]