Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

It Just Got Worse: LEH down, MER bought out, AIG nearly gone

15 Sept 2008Deepak Shenoy1 min read

Quick Facts

What is "It Just Got Worse: LEH down, MER bought out, AIG nearly gone" about?
What category is this article in?: Commentary
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 15 September 2008.
How long does this article take to read?: 1 min read
What topics does this article cover?: Crisis 2008

Ok this is as crazy as it gets. Please wear your seat belts.

Lehman at land’s end, will likely file bankruptcy. BoA and Barclays have quit talks to buy. The business may be sliced and sold.
AIG is looking at being sold, or going bankrupt. It’s just asked the Fed for $40 billion to help.
And the Fed is helping. They are accepting anything as collateral - where anything means equities and any “investment-grade security”. Essentially printing dollars like they’re going out of fashion. And they are.
Merrill Lynch is now Bank Of America at $29 per share. Thank you very much.
Singapore Nifty quotes at 4085, a couple percent down.

Welcome to Stage 2 of the World Financial Crisis, 2007-10. On the menu are two things - Buy and Sell. There are assets out there that are distressed - I would specifically be interested in low debt companies in low end restaurants or liquor. But then there’s a ton of very high P/E, high debt, low visibility companies that are literally going out the door. At this point cash is king - sell when you can generate the cash. The crisis is likely to hit our markets this week - selling has to be early, and buying has to be late.