The rumour is that Pimco is taking money out of Lehman. Could this be the demise of Lehman?
Tuesday the Dow was down over 235. It happened after the Vix went from 23 back to 25.
I would think that with the financials down so low right now, that along with several banks, the failure of another large investment bank is totally possible.
Count on the government making it more difficult for the investment banks to make a profit. Paulson, with his years spent at Goldman, might be the only hope to have our markets maintain some type of risk. On the flipside, and I know it is not his decision, I can only imagine that he is one voice that will be pushing to keep interest rates down as long as possible.
Since the Financials lead the Market, with the demise of Freddie and Fannie,
we are headed lower. This will be the first quarter that US Corporations living with $110 plus cost for a barrel of oil. Keep in mind oil is used in so much more than simply transportation.
Good Fortune from Trade-Equity.com!!!
Thursday, July 10, 2008
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