FOR EVERY LOSER, THERE IS A WINNER
tomorrow oct 21 is a very special day to take note of. tomorrow will be the payday for those that have bought insurance from aig against lehman's bonds. although lehman had sold only $158b worth of bonds, but there is more than $300b insurance amount on it.
a few pointers to ponder:
1. why is there more than double the "insurance" bought than the actual worth of the lehman's bonds?
2. who are the big winners tomorrow from this payout?
3. are these winners really insuring their exposure from holding lehman's bonds or are they short-selling lehman bank?
tomorrow when the identity of the winners are out, we will probably know more about why lehman was left to die, unlike its luckier peers that were rescued by the feds and paulson.
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