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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Riskmgmt who wrote (70363)	9/14/2008 11:11:27 PM
From: Maurice Winn	1 Recommendation Read Replies (2) \| Respond to of 74559

No doubt there was some "see who blinks" to the negotiations over Lehman Brothers, with Barclays having nothing to lose by giving up the acquisition, but the USA Federal Reserve and USA in general having a lot more to lose if say $10 bn from Barclays and $10 bn from OPEC/sovereign funds and $10 bn in guarantees from the USA Fed is not used to get Lehman Brothers back on the straight and narrow. The deal can be done tomorrow if necessary, once people have better considered the outcome of failure to fix the situation up. The USA gaining $20 bn input to help prop up the $trillion economy would be good leverage for support. Whichever way it goes, something will happen. Mqurice