Saturday, September 13, 2008
It's All about Lehman
The financial news this weekend seems to be focusing on Lehman brothers. There are many other major issues developing, such as AIG, WaMu, and bank issues starting to appear as a result of Freddie and Fannie deal last weekend.
The spin seems to indicate Lehman is bankrupt, and the government is pressing hard for this to be resolved by 6pm Sunday, to head off Asia markets opening down hard on jitters.
The general theme seems to be , and I quote:
"Unless something is settled, it's going to be a bloodbath Monday".
The sharks are in the water, and Merrill Lynch is next up on the sacrifice block after Lehman is taken down in the next two days.
So a recap: Lehman failure imminent, next up Merrill and WaMu, followed by smaller banks and rumblings at AIG. Just 11 days ago the spin was it's a good time to get into financials since it's cheap. Believe a blogger with no financial gain over the talking heads, it's not a good time, and it will not be for the next 12 months or more, but it is a good time to get Federal Bonds.