Wednesday, September 17, 2008
Shot By Both Sides
Let's get this straight: The Fed prepares an $85 billion bailout for American International Group, because the insurer's exposure to derivatives and hedge funds could cause a domino-effect collapse to banks in Europe. So the day after the deal is announced, HBOS and Lloyds TSB both own up to being in such bad shape, they will attempt a merger, thus possibly starting a domino effect in Europe. (Oh, and let's not forget Morgan Stanley and Wachovia.) Translated, whatever we do we're screwed. Look out below.