The markets are a bit weaker today, which isn’t a total surprise. However, the selling is much stronger than mere profit taking, as some are saying. There is a rumor that Merrill Lynch is looking at a pretty big write-down, so that’s affecting the financials. Wait, I thought the government banned those pesky rumors! I can’t say how many times I’ve heard it said that Bear Stearns was brought down by rumors. Argh! They say the rumors became a self-fulfilling prophecy. Give me a break! A is A! Reality may be biting these guys in the bum, but it is what it is! Would the outcome have been different had the rumors been that Bear Stearns declared itself a sovereign, rich country? Nooooo. Bear Stearns was in trouble and wishing it to be different wouldn’t have changed the end result.
