Lehman needs to be either closed-and-then-sold or sold-and-then-closed. This will take the pressure of excess lending capacity off of the other, healthier banks.
What should the market focus more on in the coming months? Good news for oil and the dollar or bad news for banks?
It’s hard to imagine the market worrying more about banks than it already does. The market should focus more on oil declining as the price bubble deflates, the dollar slowly trending lower, and good old fundamental stock valuations.
The price of oil and value of the dollar are important considerations for the market and investors that depend on consumer strength for their earnings.
BUT since the US has turned into an economy whose growth is debt-based, over-extended banks could bring the whole thing crashing down (1929 style).
Good news for oil? I’m confused. Is $124 a barrel good? I don’t care if oil drops $20 this week. Until we get to resonable prices we are going to continue to falter. There is no good news in my opinion. Until either income rises or living expenses fall I belive we will continue on the path of recession
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Of course investors as well as ordinary people should be worried about the financial health of major banks. Regulators have been out to lunch during Bush’s watch. We may be on the verge of the ‘Saving and Loan’ bailout at taxpayer’s expense caused by the looting of crooks.