Wall Street Hedge Fund Crooks re Lehman

[my new technique: take the portable laptop and turn on the TIVO of the previous night's Mad Money. Push "control+shift+n" to bring up Notepad. Push F5 to get the time printed on the top. Then take notes on important things Cramer says] Then cut and paste as appropriate and post to this blog.]


Kesselschlacht, pure and simple.

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lehman bonds
$158 billion in debt
hedge funds were allowed (Cramer's words) by Chris Cox at SEC to buy $360 billion of insur contracts on those debts. that much "fire ins" ie overinsuring your house and then burning it down for the insurance.
then the hedge funds:
short selling AIG common-- Kesselschlacht
after buying insurance on Lehman's bonds going down, and then "torching" lehman by badmouthing them and calling Wall Street etc.
aig was the biggest underwriter of lehman bonds
so now us govt will have to cover this!

8:06 AM 10/17/2008
oct 21
we will find out just how bankrupt aig is
when leh insur contracts have to be paid off!