JP Morgan (JPM) buys Bear Sterns (BSC) and Fed cuts rates

As many people guessed, JP Morgan (JPM) is buying Bear Sterns (BSC) with guarantees from the Federal Reserve. (For once, CNBC was right.) The Fed also cuts 25 basis points.

I am really worried now. For one thing, the price for the JPM takeover of BSC is $2. Does that mean the shares are going to open at $2? Why were there so many dumb people in it at $30-35? I mean, even CNBC kept saying that equity was wiped out. If BSC was so mispriced, are other banks also mispriced? I guess we'll find out when the market opens.

Why cut rates when there is a FOMC meeting on Tuesday? Doesn't that signal the Fed is panicking?

I have a feeling that Monday is going to gap down on heavy volume (don't have any theories, just a feeling). The news doesn't make me feel confident.