MattDC

The Crazy Lehman Share Price

Have to agree with SnPTrader and lcandolton.

Bad numbers, such as are released to the market, the rest assumed in suitably scary way, are driving the stocks down. Why? Opaque market actors in crisis do not trust imperfect information, esp at ugency; opaque markets on the up inspire irrational exuberance. We're simply seeing the down from the previous up, but perhaps correctives are sharper and swifter? Should the rules change? I don't think so, not mid-game.

I think we've got to focus more on the psychs of the players. For instance, the Victorians used to make stark distinctions between the deserving and the undeserving poor. What do the policymakers think of the deserving and undeserving banks, their positions and exposures, their labour force, and with what implications for policy and investors? This is not academic: Bernanke and FDIC have to decide on who fails without bailout and why, and how it's portrayed. And whether what they prescribe wroks.

M