Looks like Lehman Brothers will follow Bear Stearns into a shotgun merger. The buzz on Wall Street sounds like Merrill Lynch is next and then AIG and then Goldman Sachs and then.....
The effective tactic that turns these once blue chip stocks of the financial sector into a powdered form is the classic "bear raid". It's nothing new. It was around before the Crash of '29. It was used by Joe Kennedy and the very successful but suicide Jesse Livermore. Simply a group of speculators target a stock and then relentlessly sell it thus creating a panic in the financial markets till it spills over into the real world. And then it either goes bankrupt or is forced into an arranged merger. And members of the bear raid group profit from the collapse of the stock price . The "effective tactic" was the bear raid. But the fundamental reason that enabled the bear raid tactic to work was the questionable value of the underlying business of the targeted stock in the first place. It begs the question, "If these companies are so valuable, then how come they can be sold down so far?".
I.E. could a bear raid be successful if Wall Street operators tried to sell a $50.00 bag of groceries for $10.00? Or how successful could a manipulator be selling a gallon of gasoline for $1.50? Not successful because groceries and gasoline have intrinsic and recognizable value with a large market. Shares of Bear Stearns, Lehman, Merrill or whoever really when, push comes to shove, don't have intrinsic value. They operate on the "greater fool" theory. That's why the machinations of Wall Street bear raids acn be pulled off. Everyone kind of knows or suspects that Wall Street can't last .
If one is interested in building self worth and avoiding future disruptions then one should join with other like-minded, value-added individuals for a barter system . Then the group can freeze out grifters, politicians, Wall Street operators and all the other usual suspects.
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