Taxpayers Bail Out Bear Stearns; JP Morgan Buys for $2/Share Discount

A couple of months back, I wrote the following:

The unprecedented wealth transfer from poor and middle income families to the uber rich is nearly complete. The folks at the bottom of the GOP-led financial pyramid scheme are nearly bled dry, and the pyramid is about to collapse. To sustain itself a little longer, the folks at the top of the pyramid will have to start an Amway-style ritual of financial cannibalism amongst themselves. I think that (to an extent) this is exactly what we're seeing in the stock markets and big financial houses as the true meltdown begins...

I don't even know where to start on this one. How about here?

So the only possible justification for such Fed action is to engineer an orderly rather than a disorderly shutdown of this institution. But unfortunately the Fed is behaving as if Bear Stearns is illiquid but solvent. That is delusional and the official sector support of an otherwise insolvent institution will end up - like many other recent Fed actions - being paid for by the US tax-payer...

Today, J.P. Morgan Chase agreed to buy Bear Stearns for $2 / share. You read that right.

$2 / share.