been thinking about LEH and AIG

J

jasonjm

and the only conclusion I can come to is that the fed is going to cut tommorow, and cut by 50bps

they were thinking the markets could survive 24 hours of panic before it got its next fix, so no real reason to bail out LEH and AIG, they are going to bail out everyone by dropping rates to 1% before year end.....

nothing else much makes sense, unless they like gambling thesedays?
 
I would not be surprised to see a cumulative 100bp cut from the Fed over the next few weeks.

As for LEH. Barclays and others will pick over the scraps.

AIG? Given their size and shear volume of outstanding trades with major counterparties, they are NOT going to be allowed to implode.

Sure their stock price is going to end up in the pennies but one way or another a solution will be reached for the critical business units.
 
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