It's 12:40 AM in Spain

I can't get shut eye. Last night wasn't really good either. I shouldn't read Roubini at night.

I decided to update myself the AIG thread. They are lined-up to dump $20B worth of assets on the markets tomorrow. This is the spiral in earnest then.

Then Lehman looks like it is going to fail. No-one wants to buy an insolvent bank for a positive number and the authorities are playing a game of chicken where no one wins.

Before I could get to click the 'new post' button, to write about Lehman, news hit that Bank of America is merging with Merrill Lynch over the weekend.

I make my way to Roubini's site where he talks about the death of the broker dealer model and talks about Lehman, Merril, says Goldman is gone within weeks or month.

I panic a little bit. Then I take a deep breath and write. I need to get some sleep.

Comments

Wayt said…
Finally. The US Treasury Dept and the Fed have finally decided to draw the line: no more bailouts. Hopefully this will "lance the boil," and after a 5-10% drop early this week the financial system can settle down. I am poised to get out of inv-grade bonds and back into equities. This will be a major buying opportunity, methinks. Hopefully I won't be just catching a falling knife, but I think this will lance the boil, finally, after a year of half-measures.
wayt
September 14, 2008 at 8:27:00 PM PDT
Juha Lindfors said…
Only two brokerages left standing... it's a surreal game of musical chairs on wall street.
September 14, 2008 at 9:27:00 PM PDT
adt43wt342 said…
Exploring closing procedure with Goldman Sachs as we speak :)
September 15, 2008 at 7:00:00 AM PDT
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