Thursday, September 11, 2008

When Life Hands You Lehmans, Make Lehman-Ade!

Several months ago there were whispers that Lehman Brothers would be the next big investment bank to go kamikaze, Bear Stearns-style. Now those whispers are news stories, and tomorrow they might be a federal bailout. BUT before we get ahead of ourselves, let's recall: banks have reinvented themselves before. Jon Corzine's Goldman Sachs did the same thing after its catastrophic-seeming losses in the early 1990's (hedge funds, I am looking at you.)

The moral is: after telling everyone I know that they should get rid of Lehman, I now (perversely) want the firm to come through. Weather the storm, and all that. Besides, markets are famous for fulfilling their own doomsday prophecies.

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