Monday, June 30, 2008

Morgan Stanley Upgrades Lehman after the close

Why did Morgan Stanley get religion with Lehman? Why did Merrill Lynch get religion with Lehman the last time they got in trouble, only to get agnostic a few days later?

Last I checked, it rained 40 days and 40 nights during the flood. And Lehman has 40 days from their earnings on June 16th before they have to come clean with their 10Q. Rumours coming out today were that Lehman's Fuld was going to come clean before the Fourth of July.

Then the only ones celebrating would be the shorts!

So look for more lies and obfuscation from Lehman, and more upgrades from brokerage firms, betting that the hedge funds were leaning on their shorts, and the mutual fund managers were dumping these stocks so they wouldn't be in their portfolios at the quarter end.

So Wall Street is now playing the bounce. It must be with the house's money or the implicit backstopping of the "alphabet soup" Fed.

Otherwise who would recommend a stock that you don't know what they own?

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