HOLY BEAR!!!!

Was it not a couple of days ago that the head of Bear Stearns went boldly on CNBC to say everything is ok? Bear Stearns stock is down 45% on the day (as of 11 am) on news that they are unable to fund themselves.

The term auction facility that is suppose to provide the likes of BEAR STEARNS with liquidity does not open until March 27th and they found themselves in an immediate need so they had no choice but to go to the FED immediately. JP Morgan is a conduit for the funding, as being a bank, they have access to the FED window. According to CNBC they are taking no credit risk by serving as the go between.

"The most unbelievable, selective action by the FED that he has every seen." Says Cramer on CNBC, the guy is going even more crazy then usual. But what choice did the fed have?

This is bad, very very very bad…….and sheds a very dark shadow about the problems likely being faced but a large number of financial institutions. ( banks, broker dealers, hedge funds, insurance companies .... and so forth)

The problems are far, far, far from over.