U.S Stocks Markets: No panic selling today

Thebullishtrends: U.S. stocks fall Monday but remained off earlier lows in the aftermath of the distressed sale of Bear Stearns Cos. and the Federal Reserve's extraordinary discount-rate cut just two days ahead of its scheduled meeting. But George Bush, the US president, said on Monday that the United States was "on top of the situation" in financial markets. "One thing is for certain: we're in challenging times ... But another thing is for certain: we've taken strong, decisive action," he said.

As per the Al Jazeera JPMorgan Chase, the third largest bank in the US, announced on Sunday its deal to buy Bear Stearns, the fifth largest bank on Wall Street, for $236m, after it lost half its market value in Friday trading.
The offer, which has been approved by the Federal Reserve, values Bear Stearns at a price equivalent to $2 per share – just months after the bank's shares topped $170 each. The losses sustained by Bear Stearns highlighted the continued pressure on US banks amid the global credit crunch.
The crisis was prompted when banks specialising in sub prime mortgage lending to people with poor credit histories were unable to recoup their initial outlay to debtors.Bush's statement on the market came as the US Federal Reserve prepared to cut interest rates on Tuesday in an attempt to channel money into the US financial system.