Rumors have been swirling about Bear Stearns (BSC) having a liquidity crisis. Earlier this week, BSC came out and said everything was alright. This morning, JPMorgan (JPM) and the Fed Bank of NY came out stating they’re providing BSC with liquidity. BSC came out soon after stating the past 24 hours liquidity within the firm has deteriorated rapidly. BSC currently trading at 37.95, down 33% on the day. Options activity is showing BSC actually going belly up. Stay tuned.
Update: Michigan sentiment is out a bit lower than expected at 70.5 vs. 70.8 expected. It doesn’t matter since the Dow is down 200 points. Let’s hope capitulation finally kicks in.