good points. This LEH price action reminds me of ABK and MBI last month or two... Remember the bailout of ABK? Then came dilution, and the market sold it closer to value. Good move on LEH for survival. But each share is worth at least 15% less on an earnings basis (dilution considered). oh quite a conundrum.
Market is heavily short and so can be squeezed to get a rally guing. Shorts are the buyers of last recourse - when shorts are being targetted it can be because there are too few natural long buyers. I see LEH as a longer term balance sheet writedown play, although the rules are likely to be changed to prevent any declaration of insolvency e.g delay of FASB 157, No downgarade of defaulting ABX constituents etc.
USA economy doesnât mater anymore but global does⦠We are going to have hungry people here but stock market will be fine.
horrible jobless claims and the market has barely taken a hit. i would hope the dow will end down at least 100, the worst obviously isnt over and that 400 point rally was just stupid
400k claims with 1990's population would equate to something like 500k today. 500k in 1990 would be 600k today.