Tuesday, September 16, 2008

BAC + MER - LEH / (AIG + WM + WB + GS + MS) = FDIC + SIPC - CDS - U (BJ Lawson)

BJ Lawson on the continuing financial implosion:

BAC + MER - LEH / (AIG + WM + WB + GS + MS) = FDIC + SIPC - CDS - U

There’s no telling how to solve the above equation. Too many unknowns, plus the potential of dividing by zero. The one thing we can be sure of, however, is that U are going to get hurt. In fact, we all are.

At this point, watching things get interesting is anticlimactic. We’re playing out a hand that was dealt a long time ago.Here are some insightful commentaries from the events of the past 48 hours:

We’re well beyond being a nation of laws, and are now in the Twilight Zone where the Federal Reserve cares little for its (albeit unconstitutional) authority and is making things up as it goes along. Specifically, it’s now turned itself into a margin lender for equities.

Read the rest

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