My fam and i spent the entire dinner debating who's to be blamed for lehman's downfall. to me, it's really simple.. all the mkt particpants had a hand in this. from the exFC greenspan, to present FC bernanke, to lehman's ceo fuld, and all the other financial institutions who pulled the plug on this distressed bank, had a part to play and hence, a price to pay.

if aig crashes as well, then the probability of a next wave of writedowns in the form of corp and consumer debts will significantly increase. so all eyes on the US now. and in true krugman's style, paul krugman wrote a truly cynical but sensible piece on the financial russian roulette.

but honestly, we're all very said that it is lehman, and not ML, who had to go. because it's like.. lehman u know. so tragic. anyway, financial textbooks authors will all be scrambling to rewrite their case studies in view of everything that has happened this yr. i'm sure the final diagnosis shld be very interesting to say the least..