Small Investor Chronicles™

16 March 2008

Nassim Taleb and the Bear Sterns

Which part of this:

predicted the following:
?!
Bear (subject to bad puns) closed at 30 on Friday. Yes, you'd have to go back more than a decade to find this price. Somebody somewhere is short puts on this baby. If the puts are naked, it is a classic blowup. Hey, the models tell us this can't happen, right?

P.S. This just in: JPMorgan Chase has said it is to acquire ailing US bank Bear Stearns for $2 a share. Did I read this right - TWO DOLLARS?

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