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.



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.


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