Naked Capitalism looks at the question "Just How Did Lehman Delever?"
I tracked Lehman’s (LEH) stock action before and afterwards — I don’t pay much attention to conference calls, as I have this regrettable tendency to believe what CEOs and CFOs say to me, most often to my financial detriment. Over the years, I’ve learned to skim the results of the calls, but pay close attention to the stock action.
My sense is the LEH buyers are doubling down, throwing good money after the bad of the $28 convert. Despite enthusiastic buying, the true believers could not get back over the syndicate price.
Which brings us back to Naked Capitalism. Yves has an email from a former Lehman managing director, and its worth reading, if not for the answers but for the questions they raise, about Lehman’s balance sheet exposures, land holdings, and rising compensation expenses during a time of 1,900 layoffs.
In theory, the 10Q should clear some of this up . . .
Zachary A. Goldfarb and Alec Klein
Washington Post, Monday, June 16, 2008; Page A01 html
Nouriel Roubini, professor of economics at New York University’s Stern
School of Business, talks about May retail sales, Federal Reserve
policy and the outlook for the U.S. economy. Retail sales in the U.S.
rose twice as much as forecast in May, with purchases climbing 1
percent, the most in six months, the Commerce Department said.
00:00 Prospects for weaker consumer in autumn
02:05 Fed to hold despite "hawkish" rhetoric
03:22 "Very pessimistic" about housing
04:32 Could be "long and protracted" recession
05:34 GDP to fall for four quarters
Roubini of NYU Sees ‘Long and Protracted’ U.S. Recession: Video
June 12, 2008