SnPTrader

The Crazy Lehman Share Price

There is no conspiracy. The sell off is because their portfolios are risky. Fannie, Freddie are government pawns used to prop up the housing market. LEH, like so many other investment banks, got caught like snake oil salesmen selling product that was generating millions of dollars in fees and now they want to be victims. How about the 10,000s wanne homeowners who should have been renters? These people, some very unsophisticated where offered loans that would not have past the sniff test 15 years ago. They have my sympathy not the investment bankers. Now the shareholders of the investment banks are suffering. I feel your pain but the culprit is not some special interest group, it's the government, bad policy (fox in the henhouse regulators) who allowed this to occur to prop up Wall Street (remember Paulson was the Man at Goldman). Paulson, Bernanke etal get air time to assure investors/ the world that the US government will stand behind this mess. Yeah, print money (WHOOSH goes the value of the USD), oops not print just bonds that the taxpayer will payoff in 10 - 30 years. Oh, yeah the taxpayer doesn't want any taxes so we'll end up printing the money. We've been living on leverage, read debt, now we need to pay. We need some Volcker sense to stop this nonsense. You can't spend your way out of this.