Whatever you hear … the new Government deal shows only one thing …
It will be more costly and it will last longer !!!
Nothing less … Nothing more …
CNBC has it , that if AIG collapses, Goldman will face a 50(!!!) bln$ loss
AUTSCH!!!

Despite all central banks and Government MOVE now …
so far nothing helps …
WHY?
- No short sellers have to cover
- Who jumps out of the window, does not return
- No confidence still as everybody waits for implementation rather than announcements
- Earnings season started and everybody is afraid now
- Paulson said today, more bank failures to come, […]

Markets SELL OFF again …
Retest of the lows? Putting pressure on the Congress?
NO …
BUT!!! :
In the U.S. morning hours … ABC reported …
Senate Majority Leader Harry Reid, D-Nev., pressed for passage, with the alarming news that one of the country’s premier insurance companies was about to go bankrupt if the crisis was not quickly […]

EXACTLY as market tests the low …
WSJ lights up this headline …
GOVT. asks Goldman and JPMorgan to lead 70-75 bln$ lending facility for AIG …
Hank did it AGAIN … OMG
And tommorow the “surprise cut” ?

Lehman seemingly will be sold over the weekend … market cap is down to around 2,5bln$
It will be extremely interesting, who will snap them up … the list of buyers is not as short as everybody thinks …
This time … we were told today … from the “everchanging-the-rules” FED
WITHOUT financial help of the Government (read: […]

Another one bites the dust … ???
Rumors fly as Lehman falls another 40% on WSJ article of higher losses …
CDS spreads for Lehman reaches the Bear Stearns k.o. level …
Rumors of today … this was the reason for the squeeze into the close …
- Lehman will be taken by Bank of America and losses backstopped […]

S&P, Dax and Eurostoxx traded a new correction high …
and by doing so, all 3 fulfilled their minimum targets …
Now it will be interesting to see, how markets fare over the next days.
Reactions to OBVIOUS things like Freddie Mac and AIG losses make it more likely to give the command back to the bears […]

Once upon a time there was a large UK based lender called Northern Rock …
It had a stupid business model and failed acordingly …
Everybody tried to find a buyer … Goldman Sachs advised the Government … but not even THEM wanted to make a decent bid
So the ashamed Government had to take […]