Friday, September 12, 2008

Lehman Death Watch

Lehman Brothers (LEH) continues to generate headlines without solutions. Can anyone else bail out of this stock? The Lehman situation is the hyper inverse of a speculative bubble. If you believe that the stock market is manic depressive in nature with compulsive obsessive behaviour disorders, and I do, then when situations like Lehman present themselves you have to believe there is no rationale model that may be applied. Essentially this is a tipped ball situation with skilled athletes all jumping. The real difficulty is the athletes cannot decide which game they are playing.

If I was to have an opinion and sometimes I do I would say someone needs to hang. The market and main street is mad. Politicians need the perception of big bad investors in pain. Freddie and Fanny had to be done. Lehman can twist in the wind as it’s hung in the public square. They need to make a big bad example.