i thought the most interesting thing about the WSJ recap of the cash crunch LEH created is the fact that ’someone in the Sep 12 meeting at the NY Fed’ said in print that Geithner was against allowing Lehman to fail.

now, also observe that over the weekend an article appeared in which former AIG employees said that they were a $20B counterparty to GS. this article, in my opinion, was intended to sow the seeds of doubt among the washington cognescenti about the integrity of paulson/treasury’s approach to the crisis.

it appears to me that some of the principle actors in this drama are beginning to distance themselves from the decisions that have been made on the proper course of action to date.

that suggests to me that insiders think things are going to get much worse.

SCENE I. An open place.
[Thunder and lightning. Enter three Witches.]
FIRST WITCH (Bush).
When shall we three meet again
In thunder, lightning, or in rain?
SECOND WITCH (Paulson).
When the hurlyburly’s done,
When the battle’s lost and won.
THIRD WITCH (Bernanke).
That will be ere the set of sun.
FIRST WITCH.
Where the place?
SECOND WITCH.
Upon the heath.
THIRD WITCH.
There to meet with Macbeth.
FIRST WITCH.
I come, Graymalkin!
SECOND WITCH.
Paddock calls.
THIRD WITCH.
Anon.
ALL
Fair is foul, and foul is fair:
Hover through the fog and filthy air.
[Witches vanish.]

http://en.wikisource.org/wiki/The_Tragedy_of_Macbeth/Act_I

http://www.filesavr.com/sifma

entered as http://www.guardian.co.uk/business/2008/sep/28/privateehttp://www2.blogger.com/img/gl.quote.gifquity1
should be
http://www.guardian.co.uk/business/2008/sep/28/privateequity1

http://www.voxeu.org/index.php?q=node/1718