Monday, September 15, 2008

I can add little insight to the events of the past four days except to say that if you really thought that we were fucked (overall), then maybe BoA buying up Merrill at 80% premium might sway your opinion. The word on the street from the little people is negative, but clearly people with more info know more than we do.

Two quick stories: Walking home from a beer tasting on Wall Street, four obvious new-hires trying to look smart in front of their dates talking about how Lehman was seeking financial bailout from the Fed. Bad info, of course, but the point is that they are parroting the bears which spreads like wildfire. Two: The Wife discussing closing her WaMu accounts because she overheard someone on the subway talking about their instability. These both show how even people outside of the markets pickup this stuff just walking around the streets of New York.

Perception is reality, and in our 24/7 MSNBC/CNBC dominated world the media can and will influence the markets with bearish outlooks. I haven't watched the news tonight, but maybe we need have a little more discussion about how the Fed pretty much forced Frannie and Freddie hands into this situation in the first place with micromanaged legislation. Maybe we need to make it clear that Merrill was underpriced because of our misconceptions about the economy as a whole. And maybe we need to seriously start discussing the socialism creeping into our markets, one regulation at a time.

Just sayin'.


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