Anyone paying attention to the collapse in LEH

Quote from 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.
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Just FYI... I was borrowing BSC at will (with Echo) on BSC's fateful 65 to 30 Friday.
 
Quote from Rearden Metal:

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.
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What does your sheet look like if MER take a cr*p and LEH is ok?

Hmmm, you want to revisit that open interest comment.
 
I bought SKF @ $99.86 ... planning to go long until beginning of May, waiting for the news release from the banks and Q1 2008 GDP release. Given Meredith's recommendation and this news about Lehman Brothers, this may go up big time $180 - 190.

I just read CIBC analyst report and they estimated that this Q1 2008 the GDP will be -0.7%.

I believe Heli Ben will intervene again by then.
 
Quote from DataCruncher:

what's the latest rumors on LEH?
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the usual - no one believes a word they say.:cool:


oh wait maybe that was BSC or CFC or WM or GS or MER or ABK or MBI or AIG or UBS or CS or DB or C.....
 
Not to worry if you can't get stock, plenty will become available on the "Buffet is buying" etc type rumour + squeeze coming just as soon as selling pressure eases off.
 
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