My 1st Million At 33 - yes, you can do it too

Lehman has been conned for about $250 to 355 million, depending on which article you read. That’s about 1 to 2 % of the shareholder’s equity on the balance sheet, if that number can still be trusted.

Lehman is already trading at its current book value on Friday, so I assumed that this fraud is going to make lehman to go down by 1 to 2%, plus any other magnification/forward-looking effect.

In a way, these financial firms simply haven’t done enough due diligences on all the loans that they’ve underwritten or taken onto their book (knowingly or unknowingly). The mortgage fiasco simply has exposed all the greed and ineptness of Wallstreet for the world to see. If I’m a big client with them, I wouldn’t have much trust left with them.

IAI appeared to be rejected at the $40 resistance level. This is not good for the general market. Will there be a double bottom established for brokerage stocks in general? In any case, I’m going to count my money as the April expiration date approach. I’m short IAI calls in April, and at the time when I short them, the lowest available strike on these options were $40. So I went for the lowest available. Definitely markets are surprising to the most participants, except the super-bears.