12
Jun
2008
Posted by Tom as Stocks
Ever since the Fed bailed out Bear Stearns a few months ago, I began to wonder who’d be the next investment bank to fold. It’s looking like the other shoe has dropped and the mystery bank is Lehman Brothers (LEH).
Now I don’t know if LEH will implode like Bear Stearns did, its desperately trying to avoid that and by selling assets to cover its write-downs, but I suspect that LEH will come out this situation extremely bloodied. Still though, Bear Stearns thought it would survive too.
No matter what happens to LEH, its a pretty forgone conclusion that a test of the low ($20.25) on March 17th is coming!
Any breaks below that low and its over Johnny.
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