TruthSayer

Lehman's Collapse, Revisited

YEP the mistake was lehman only if your circle was too small. Draw the circle larger it was the bailout of Bear.

By the time lehman came around - since they were bigger they did not prepare for bankruptcy - why should they Bear got bailed out.

The bankruptcy of Lehman could of been better managed but it was a result of not preparing due to the anticipation of a bailout per Bear.

So if Bear did not get bailed out - can you let lehman collapse to - and my answer would be yes. You would do something similiar to S&L it would be orderly and backed by US govt. temporarily - it would not be a bailout but would be an orderly bankruptcy. All players would of prepared well in-advance. All said that was another dimension.

Another hindsight would be Lehman was GS biggest competitor - GS rules our govt. how convenient Paulson didnt save Lehman. Funny I was watching Star Wars Episode 2 with my kids how interesting the Chancellor reminded me of Paulson - played both sides in the end to ultimately put him on top.