cat & mouse

Smelling a Short-Squeeze in Lehman

I understand now, as to why certain analysts prop up Lehman and their ilk investment banks. The visible reason is that you have the FED coming to their rescue, when bankruptcies are inevitable. FED wants to avoid this bad situation, to prevent follow up bankruptcies of other banks and firms. The firms depend on the banks for loans, so the banks must be stable. This action of the FED are really laudable, although it is a bad practice, because ultimately they are saving the investors, so that they do not lose on their investments.