Daily Investment Interpretations
September 9, 2008
The price of oil fell approximately $3 today to $103.26 in spite of Hurricane
IKE heading for the Gulf Coast. This had no positive influence on the stock
market, which tumbled head-over-heels. The Nasdaq dropped about 56 points to
about 2,210. The Dow shed 280 points to 11,230.73. The S&P lost 43.28 points
to 1,224.51. The VIX rose nearly three points to 25.47. So what happened? Lehman
Brothers, which was on the chopping block at the time of the Bear Stearns
bailout, announced that a deal to raise new capital from Korean investors had
fallen through. (Presumably, when they performed due diligence, they discovered
just how parlous a state Lehman Brothers was in.) :The Lehman Brothers stock
price swooned 40%, while the next bank in line for the execution block,
Washington Mutual, declined in price by 20%.
Here are articles by Paul Farrell, Michael Ashbaugh, and Mark Hulbert.