What's Next?
Ok, so if LEH and MER are out, WAMU and AIG possibly out, if not, drastically restructured, what happens next? Not everyone will fail, but seriously, could this be the worst of it?
It seems entirely possibly that the Fed will come out and ban naked short-selling on financials for the time being, it could cushion some of this.
The Dow futures are down less than 300 points, sure it will be a tough day tomorrow pending no future good news, but it's not the end of the stock market.
So what happens next? Does this change things drastically, or does it get us closer to the end of this mess?
It may be a given that tomorrow is a big down day, it will be interesting to see how much volume comes with it.
The crazy thing is that between Goldman Sachs and Morgan Stanley, they will have a monopoly in the investment banking world.
My prediction last Friday on that Lehman thread was that because of LEH, MER, WAMU, and AIG all failing at once, there will be some sort of capitulation or washout period soon. I don't know if it will happen, but eventually there has to be some good come out of this.Bear markets do not end until there is blood in the streets. Question is, “Is this enough blood to kill the bear?”
Shit, I guess not...but it's not good. Pretty crazy.Bear markets do not end until there is blood in the streets. Question is, “Is this enough blood to kill the bear?”
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