Mbuna

The Great GSE Meltdown: Market Adding Fuel to Fire?

"This will totally impair the ability for Citigroup (C), Merrill Lynch (MER), and Lehman Brothers (LEH) to raise capital." These 3 companies were clearly insolvent 6 months ago IMO as a result of the gathering of the perfect financial storm which has cut off any possible escape route. The only drama playing out now is how long they can artfully hide their insolvency. Everyone is in over their heads and Bernanke and Paulson can do little more than put bandaids on to try to protect the interests of their constituents. No one is thinking outside the box they are in. As for the GSE's, they were a convenient vehicle for propping up the housing market for a time but as we all can see that time has ended. I think it better to start thinking about the fact that the US government is well on its way to losing its AAA credit rating. At least you have seen that there is the possibility of there being no winners in this game. For most players that is unthinkable.