LEH Beats, BBY Beats, Why Cut?

LEHMAN delayed the bad news by cooking the numbers with level 2/level 3 valuations

 

That guy this morning on cnbc was talking about a 50 bp cut and dow 14500 by the end of 2007, all I did was laugh.

Many think there going with a 25 BP cut and lowering the discount rate by 50 BP

 

It's interesting that BSC is selling off on LEH's news and that GS has almost no response at all. It's almost as though they're expecting an afternoon selloff.