On the demise of Lehman Brothers...

I feel sad seeing Lehman Brothers going down like this. I've endeared myself to Lehman, not the least due to its last-in-the-line-as-independents status in the investment banking world, but that I've spent time there, once upon a time. My old boss has even got a recent promotion to go conquer a brave new world. I've reacquainted with him after a number of years, me doing my own things, and watching from afar him in the news doing news things at Lehman. I'm quite proud of him having persevered in the business. I don't think I would have enjoyed it, if I were him. Still, persevere he did...and look what happens now.

I wonder what would happen next. I hope there would be some kind of LBO to spin off the investment banking side, and keep the Lehman tradition alive. To see Lehman going down due to the subprime mess is like letting a kid driving a Ferrari at full speed right after he's mastered riding a bike. He should have stuck with the bike until he's old enough to get a driving license before test-driving a race car. Oh well, but it's too late now, after the car crash. Now we'll have to write off the Ferrari, and wheel off the kid to the morgue.

I hope my old boss will survive it. But judging from the number of layoffs (in tens of thousands) just on Wall St alone, it won't be an easy task. It'll take at least 1 - 1.5 years before everything stablizes. Now that everything's in full retreat, including private equity, hedge funds, and banks, it won't be easy to find another nice, cushy job.