Humpty Dumpty sat on a wall and along came the Knight

Implications: The takeover by JPM will set in motion many more mergers and acquisitions.It will be a trend setter in the sense stronger firms will take courage and come forward to acquire weaker firms. The deal will act as a benchmark.

Analysis: A time was when the mighty Bear had a bull run. The Bear hug was a sure sign to prosperity. A Bear that withstood the Great Depression has been struck down by a credit crisis of the sub-prime variety. A generation later this sub-prime crisis will be be talked about as the 'Great Sub-Prime Pit', the bottom of which is still elusive.

With the price Bear Stearns has commanded (?), it appears those sub-prime mortgages were against houses of cards. The investors have been taken for a ride. Investors confidence has been shaken like never before.   

One silver lining though is the Fed's rescue act and JPM's guts. Investors can breathe easy - just. But there is hope for other such firms. Some of the firms may turn out to be great bargains. Stronger firms should move in now, as there are good firms which need a trunaround. But careful due diligence is a must as hidden dragons can catch out a crouching tiger.

But for Bear Stearns the cigar gets butted.

And JP Morgan acquires a new role - Knight in a shining Armour.

There is a lesson in all this - Look before you Invest.