So you wanna bailout the whole world?
Courtesy of Bloomberg a possible explanation of the 600points Dow swing that today blew up all the (sensible and justified) short positions in financials. Apparently, we are heading toward some pretty serious system-wide bailout.
“Schumer urged forming an agency to inject funds into financial companies in exchange for equity stakes and pledges to rewrite mortgages and [...]
Lehman and Merrill
OK - this is old now. I wrote it early this morning, and the world changed egain, but hey! Why should I not post it?
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At the end, it did happen. A “major” financial institution has gone bust. So the FED has sort of “saved the face” with regard to Moral Hazard. Merrill would have probably [...]
Lehman
Interesting weekend.
With Lehman collapsing, a lot of top dogs in Wall Street are trying to see if there is still some meat left, or if it’s just bones. The Government and the FED are trying to see if the bank can be saved without taxpayer money. Might be a bit late after having put them [...]