Shortseller David Einhorn, gave a pathetic job defending his short position on Lehman on CNBC this morning.
He gave bulls the green light to buy the stock. For a few days.
Lehman has all kinds of junk on their balance sheet disguised under Level III assets.
But our Fed already has close to $400 billion of assets on its balance sheet from the banks.
What's few billion more?
So you can spend your time digging through the 10Q at Lehman, finding all the junk real estate they've managed to hide. But it won't make you any money.
But they have more money, than the shorts have time.
This time, when Lehman faced pressure from the shorts, Merrill Lynch upgraded the stock. Last time, in March, when Lehman faced problems and rumours, Citigroup upgraded Lehman.
Last March 28th, when the shorts pressed their bets, the market had a huge rally on April Fool's day.
The shorts remembered that, and the bears, who pressed stocks down by laying out more shorts earlier this week, started their covering today, and the market rallied all day.
What a surprising coincidence!