John, everyone's just trying to buy time to deal with their issues using anything they can. Whether it's the new borrowing windows at the Fed, the limits on shorting, the delay in implementing the new accounting rules for Level 3 assets, or the mark to model methods for valuing assets.
These efforts will all fail in the end, and the market gravitate towards the level it would have gone anyway without all of this intervention.
It's 2-months of terror, 1-month of respite. Lather, rinse, repeat.
On deck still, meltdowns for Zion, Washington Mutual, and Wachovia in addition to Merrill and Lehman.
Of course, in 2009 we get the bankrupcies or bailouts of the Big 3 automakers.
Meanwhile, the homies look like great shorts here again. |
