Lehmanremains near the lows for the day, and we have now come full circle as the S&P 500 has given back all of the gains it made yesterday. Two observations:
1) this year, those who have been the most bearish have been the most correct;
2) waiting in the hope things will get better is not an effective strategy.
This is something Secretary Paulson learned regarding Fannieand Freddie; he had his "bazooka" to take them over a while ago, and doing nothing hoping things would get better just...made things worse.
So it is with Lehman today. We have heard of endless permutations about capital raising, but...no capital raise. We have heard of discussions to sell assets like Neuberger but...no sales.
Waiting is not working.
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