The Realist

Could Lehman's Failure Cause a Systemic Meltdown?

LDT, put down your crack pipe man. LEH has liabilities well in excess of its assets. They can not pay their debts in full, what makes you think someone is willing to buy them for $35 billion? To me that seems like $34.9 billion too much.

I would like this to just end the way it should, let the bank wind down and the chips fall where they must. I could not disagree with Felix more that the Fed should take any actions. How much more of my money does the government have to steal? I am already in the mortgage business thanks to these clowns, I don't want to be in the Investment Banking one right now.

These criminals create a bubble for five years, steal our money and then expect us to "backstop/cover up" their theft. I have no problem working out the counterparty issues but debt should get exactly what is left over after asset sales, not a penny more.

Financials To Resume Meltdown Momentarily

Are you saying in point 1 that the banks are going down now only because of the short selling rule? It has nothing to do with the fact that these companies are in serious trouble and any one way collapse at any moment? It has nothing to do with billions of loans outstanding that might not be paid back in full? It has nothing to do with having to use what precious little money they have to buy back auction rate securities that they sold by deception?

With at least another year of write offs and to the real estate bottom, a contention that I believe is off by one to two years, why would the market rally in two months? Because it is forward looking and effecient? Just like it was forward looking in Aug-Oct of 2007 when it ran to a new high in the face of the sub prime meltdown?