IF.. the LEH(http://www.nakedcapitalism.com/2008/06/so-how-did-lehman-delever-not-very.html) story on how they off-loaded asset to "vehicles" is true it could be major catalyst on biggest story this p.m - too big too fail has been said too often -- look how major australian outfit Backcock & Brown going down and fast!.....Bear etc.. I was around in Chase in early 1990s..not nice!!!!!
- Small caps & banks getting killed in europe
- mortgage spreads widening
- Germany vs P.I.G.S widening
- US authorities on massive REGULATION CRUSADE.....
- Inflation totally misunderstood as it come "sailing in" from Asia not induced from US (if you ignore BB and Greenspan feeding frenzy)
- This is globalisation negative
- Central bankers left with no credibillity
- Main bulk of input to US economy spent in Q2- meaning Q3 going to get worse..
- Yield curve inverted in Europe - killing banking models....
- Market cant rally even on good Goldman number plus falling crude prices!
- Market is scared... v. scared.. small investors losing a lot of money--- and on the ready to bail out
Maybe we are all waiting in-vain for the bounce to go net MASSIVE short... I don't know, but this is beginning to feel like 1992 early month before the ERM broke down - we all know the trades, now finesing the entry points---- maybe we are already too late?