Free Fallin

JPMorgan Chase (JPM:NYSE) has agreed on Sunday to acquire The Bear Stearns Companies (BSC:NYSE) for approximately $2 a share. If you wondered if anything could top the free-fall this past week of New York Governor Eliot Spitzer, look no further than Bear Stearns, which traded in the $150 range back in June.

This past week, the CEO of BSC repeatedly told us that BSC was fine and not in danger. Then came Friday and look out! Now, JPM is taking it over for virtualy nothing. Back in the days of Ace Greenberg, BSC was quite reputable.

This was announced on Sunday in an effort to stabilize markets prior to the ASIA markets opening. The issue goes beyond Bear Strearns and The FED recognized this. The FED also lowered the discount rate.

Finally, we are putting a price tag on the fallout of the subprime mess, and this is a good thing. The stock market hates uncertainty, and this will help as the amount of damage can be accurately forecasted. Thankfully, I did not own this train wreck. I wonder who may next!