Bear Stearns collapses

The credit bubble has claimed its first major finance company: Bear Stearns. The venerable firm, which traded as high as $160 in 2007 and was trading above $60 just last week, was bought for a mere $2 per share by rival JP Morgan Chase and Co.

From my point of view, this is the first of many spectacular events which will hit the over-leveraged financial community.

Absolutely amazing. This is a stunning collapse by a major, major player on Wall Street.

Addendum: See Credit Crisis Timeline for more detail on Bear’s timeline and the overall credit crisis.

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