Looking for the Eye of the Hurricane

I see only the storm.

From the BBC this morning-

One serious anxiety concerns the auction today to settle liabilities on insurance – or credit default swaps – on debt of the collapsed investment bank, Lehman Brothers.

So, after taking a second hot chug of chai, I read on.

And if that claimant had been calculating its own financial strength on the basis that it had insurance against its Lehman debt, well then failure to receive payment could shatter the integrity of its balance sheet. Which in turn would create potential losers among its creditors.

So this day of reckoning on Lehman credit default swaps is momentous – and it could not come at a worse time for fragile bank shares.

Forget the hurricane. What we have here is a chemical cascade- a series of multiplying steps of exothermic flow. Plywood on your windows isn’t going to help.

Sybil

Advertisements

One Response to “Looking for the Eye of the Hurricane”

  1. uncommonscolds Says:

    So the Hindenburg’s in a hurricane? Wow. I guess that’s gonna make landing even harder.

    Why am I not surprised?

    Nice to see you’re back too.

    Cassandra

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: