Tuesday, September 09, 2008
As painful as it is to see Macro Man's friends at Lehman in personal financial distress, it's hard to escape the conclusion that the endgame is near. A record-volume slide into single digits and a current price that's 50% lower than Monday's opening suggests that checkmate is very, very near.
By all accounts, Lehman is considering releasing Q3 earnings after today's close to stop the speculation; the danger, of course, is that the release merely confirms the market's worst fears. Bear, Fannie, and Freddie provide recent evidence that a single-digit stock price is a death sentence; continuing with the chess theme, there doesn't appear to be a white knight on the horizon to swoop in to the rescue.
The obvious conclusion, barring a shocking development over the next ninety minutes, is that it's back to plan A for the equity bears and back to the drawing board for Team 1250. Strap yourselves in....this ride is about to get (even more) interesting.