So it’s all peachy, then. Despite the recent meltdown of Bear Stearns, the “near-catastrophe” that was avoided, and the scrabblings in the Federal Reserve, we can just relax and breathe a collective sigh of relief. According to one of the analysts at Lehman Brothers, the worst of the credit crisis is over:

“Events in the past couple of days indicate that global equity markets have moved on from discounting the recessionary impact of lower earnings to considering the implications of a systemic reduction in the availability of credit to otherwise profitable businesses and creditworthy households.”

Umm, I beg your pardon?

“We think this likely represents the culmination of the current crisis in capital markets.”

Oh, jolly good. …But I thought Lehman Brothers was flagged as one of the next most likely US banks to crumble after Bear Stearns? Continue reading »