Lehman will file for bankruptcy tomorrow. BAC has agreed to buy Merrill Lynch at a premium. Is this a turning point for the markets? This will be a historic, event driven week for the markets. The broker/dealer business model appears to be going the way of the dinosaur. To come - GS earnings on Tuesday morning; FOMC policy Tuesday afternoon; OPEX on Friday. And what of AIG? Hearing that U.S. Treasury and the Federal Reserve are expected to say they are prepared to be more generous in the Fed's emergency lending program for commercial and investment banks.
CNBC currently reporting live as all this unfolds - USD falling, futures falling, Gold rising...
4 comments:
Hey Jamie,
I'll go out on a limb and predict good volatility for tomorrow...
ha, you think?
Will be fun to see how this plays out.
Keep up the good work Jamie!
Thanks RC!
Hey Jim,
VIX took out previous high (Bear Stearns) right on the open. Closed on its highs for the day.
Jamie,
Yes. Looking back 1-2 years, a VIX of 35-37 should signal a good bottom (intermediate term) in this market.
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