Heads up on LEH!

I was wondering if Leh actually can go bankrupt? Cant they borrow as much money as they need from the Fed? I mean if they somehow manage to go bankrupt despite getting all the money they need from the Fed I guess u can really say Bye bye to the mkt.

 

Yip LEH is Ok but the FED will go bankrupt instead opps I mean the US after all the FED printing press is running overtime.

 

BSC never traded at $2

 

You idiot. Every day you claim the market isn't affected by anything negative. I guess in your mind it went up today on the LEH news.

The bear market rolls on dummy.

 

How bad is it that a company had an unlimited line of credit at a negative real interest rate along with perfect luqidity for its assets.


LEH is a joke!

 

I disagree, I think the best fundamental traders could have and probably did.

Remember the difference between a typical fundamental analyst, and an excellent one, is as big as the difference between a typical chartist and a great trader with genuine feel for the tape. The difference between the world's best fundamental trader, whoever that is, and a good hedge fund manager, is as big as the difference between Michael Jordan and a typical NBA player. It would not surprise me at all if someone had shorted BSC on fundamentals and held all the way down.

 

7.33 EST

FT reports that LEH lost between $500M and $700M in Q2 on various hedges

 

The real story is they haven't written down their CDOs enough

 

Agree

 

Thye real real news is that they won't be forced to.

So far we have had 100BP of rate cuts and "treasuries for trash" extended to IB's just for LEH (FED shareholder and Fuld sits on board of NY Fed who opened the spigot). We have seen MBI and ABK keeping their AAA rating, we have seen AAA rated CDOs in default keep their rating if they are part of an index, we have seen a FAS 157 clause delayed, we have seen the SEC say if a valuation is distressed you can look on that as temporary and book it at what you like, we have seen declines in value of bonds issued booked as "revenue", we have seen all kinds of accounting rules relaxed or liberally interpreted so that insolvent banks don't have to declare their insolvency. etc etc etc Wholesale corruption aided and abetted by the Government, SEC FASB and a host of others.