I've been saying for some time to expect an ugly October as far as the equity and debt markets are concerned. With the slow collapse of Lehman turning into a landslide, it could turn bad a month early.
Please, if you have any money in a U.S. bank or own a stock, pay close attention to this deal - or non-deal.
UPDATE: from Bloomberg - Wall Street Prepares for Potential Lehman Bankruptcy Filing
UPDATE 2: Mish's take on the the debacle
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UPDATE 3: We'll know for sure on Monday, but it looks like Lehman will be pronounced dead - suicide by leveraged balance sheet. The quotes coming out about LEH are, in a black humor sort of way, funny. Take this quote from the New York Times, which matches up well with dialogue from the classic comedy movie Fletch. Talk about life imitating art...
NYT: "...[Lehman's] abrupt failure would send shock waves through the financial world..."
FutureJacked: Abrupt? Lehman's been a dead man walking for months. Even my amateur level of ability to analyze a balance sheet and annual report told me that.
Dr. Joseph Dolan: You know, it's a shame about Ed.
Fletch: Oh, it was. Yeah, it was really a shame. To go so suddenly like that.
Dr. Joseph Dolan: He was dying for years.
Fletch: Sure, but... the end was very... very sudden.
Dr. Joseph Dolan: He was in intensive care for eight weeks.
Fletch: Yeah, but I mean the very end, when he actually died. That was extremely sudden.
UPDATE 4: Well, we'll see how deep the rathole of exotic derivatives goes now, as Lehman to File for Bankruptcy Protection