Anyone paying attention to the collapse in LEH

Discussion in 'Stocks' started by Mvic, Mar 27, 2008.


  1. first come the denials, like they were making today on CNBC,,


    then comes the news leaks....

    what about Wachovia? or was that Washington Mutual?

    not sure which,

    don't want to paint with that broad swath.....
     
    #21     Mar 27, 2008
  2. WM
     
    #22     Mar 27, 2008
  3. How much are you doomsayers prepared to lose betting on the end of the world?
     
    #23     Mar 27, 2008

  4. ohh, about as much as it takes to profit from it....

    isn't that the mantra of the hedge operator?

    can't wait for the news cycle on CNBC, Bitv, Fox Bus Channel to change over to something not so gloomy....

    can't wait for the trading environment to stop being keyed off economic news releases (http://bloomberg.com/markets/ecalendar/index.html) as the driver of the day....

    so, how would you answer?
     
    #24     Mar 27, 2008

  5. They have already lost the world! Now sitting like an unhinged cripple, staring at the circling skies, dumb eathbound misfits..
     
    #25     Mar 27, 2008
  6. Here's a great secret to the markets.

    SHORT the Rallies
     
    #26     Mar 27, 2008
  7. man this is getting bad, i think there is another shoe to drop for the financials when the Q1 writedowns happen in the next few weeks.

    looks like i was wrong, the market rallie is fading already...see what happens tomorrow.
     
    #27     Mar 27, 2008
  8. C June $12.50 Puts: Although 47,000 were traded today, the open interest is still under 8,000. ...So it's probably meaningless.

    As for LEH, public perception can be more important than reality.
    Look at how Refco collapsed. Truly healthy balance sheets can't save you when you become perceived as an unacceptable counterparty. Hence, I'm sitting in a short LEH (via conversion- can't borrow shit)/long MER pair at the moment.
     
    #28     Mar 27, 2008
  9. mokwit

    mokwit

    Agree, perception is reality in markets, at least for a short while, and this is extreme with financials where it can becme a self fulfilling prophecy. Interesting there is no stock for borrow on LEH anywhere (?) - BSC was the same 2 days before it rolled over and died.
     
    #29     Mar 27, 2008
  10. it sure feels that way....
     
    #30     Mar 27, 2008