Who Knew?

It’s been a year since Lehman Brothers, that age-old, proud Wall Street institution was destroyed.  Hmm.  Well not quite.  The Lehman Brothers that went under was created in 1994, making it a venerable 15-year old institution.  The original Lehman was acquired by American Express’s Shearson unit in 1984.  Shearson Lehman (Hutton) was a far cry from the powerful institution Lehman had once been.  Amex and Shearson ran the show.  Shearson later bought what was left of EF Hutton after it collapsed in the wake of the 1987 crash, making it an amalgam of several prior firms owned by a large diversified corporation.  It’s a testament to the new Lehman, however, that it was able to become such a significant player over that 15-year period.  Well, 15-minus-one year period.  It’s an interesting history.  Who knew things would get so bad…


Published in: on September 16, 2009 at 19:33  Leave a Comment  
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Wolf & Bears

The trail has been a bit rocky for the last week.  Between challenging riding conditions and dark nights, it’s been tough to do much writing.

There have also been some tense standoffs in the high country:

Here’s Wolf’s column in yesterday’s FT.  The Cowboy likes his analysis and agrees with his assessment.  (Here without registration.)

Money quote:

“Is the worst behind us? In a word, No. The rate of economic decline is decelerating. But it is too soon even to be sure of a turnround, let alone of a return to rapid growth. Yet more remote is elimination of excess capacity. Most remote of all is an end to deleveraging. Complacency is perilous. These are still early days.”

The Cowboy gave his view of green shoots a couple of weeks ago.

We’re all taking turns with the carcass of the financial system.  Despite some bullishness in the markets, the Cowboy agrees with Wolf that from a macroeconomic perspective, the bears have the advantage and they’re not done picking at the carcass.

Published in: on April 23, 2009 at 11:30  Comments Off on Wolf & Bears  
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