Cramer on BloggingStocks: BlackRock venture signals the beginning of the end
Posted by: in Stocks Money NewsFiled under: Market matters, JPMorgan Chase (JPM), Bear Stearns Cos (BSC), Housing, Cramer on BloggingStocks
TheStreet.com’s Jim Cramer says we’ll finally get real pricing of the hard-to-mark paper.
After months of saying, “Why don’t they bring in some pros, do a Resolution Trust and get on with things?” I can’t believe that it is actually happening. With the anointing of BlackRock (NYSE: BLK) (Cramer’s Take) — nice short squeeze in that one, buddy — to parse out or invest in the worst toxicity that is Bear’s (NYSE: BSC) (Cramer’s Take) portfolio, the Fed/Treasury — and I reiterate that the Treasury is driving this — is signaling the beginning of the end of the “hard to mark/hard to trade” component of this nasty bear market in fixed income.
Even as recently as two weeks ago I could not believe this stuff couldn’t trade and remained 20 bid and 80 asked, meaning that the gulf between buyers and sellers was just too ridiculous.
Now, with BlackRock, empowered by the government, to dump stuff or parse it out, we are going to get real prices because “something has to happen.” Some trades have to occur. All that had happened before this was that Bear inventoried all this bad stuff, having unwound it from funds of its own or taken junk from clients, and we had no idea how to value it.
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