Friday, September 12, 2008

Lehman In Trouble

Here is the 1-year chart for Lehman (LEH)

Here is the 1-year chart for Lehman vs. Washington Mutual (WM) and Merrill (MER).


I blogged about this earlier.
Looks like it's a race against time. Lehman is the overlevered borrower whose house price is falling through the floor. It's the negative equity story, and unless they find a buyer for this distressed "asset", it doesn't look good. Maybe the gov't will bail these folks out too. I know some really good people over at Lehman, so this one has been tough to watch play out. It sucks that their management has mortally wounded the company. Agency issues and greed.

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