Junkie...junk

Lehman Brothers has filed for bankrupcy protection.

The market has opened in New York.

The market value of LEH's equity has evapourated.

Whose next? Wachovia Corporation? Washington Mutual?

Or AIG or Citigroup?

Let us be reminded of the following quotes:
"You only learn who has been swimming naked when the tide goes out — and what we are witnessing at some of our largest financial institutions is an ugly sight.”
~ Berkshire Hathaway 2007 Shareholders letter


Charlie and I believe Berkshire should be a fortress of financial strength – for the sake of our owners, creditors, policyholders and employees. We try to be alert to any sort of megacatastrophe risk, and that posture may make us unduly apprehensive about the burgeoning quantities of long-term derivatives contracts and the massive amount of uncollateralized receivables that are growing alongside. In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are
potentially lethal.
~ Berkshire Hathaway 2002 Shareholders letter

In each action we must look beyond the action at our past, present, and future state, and at others whom it affects, and see the relations of all those things. And then we shall be very cautious.
~ Blaise Pascal

I MUST LEARN!