Subject: FW: FALLING DOMINOES

Sent in by Eric and from Le Metropole Cafe. An oversimplification in places and wrong in one part but pretty near nevertheless. Lehman is next by all the rumours, but essentially all the US primary dealers have very little capital supporting illiquid assets with realisticaly no value. In Canada the issuers of the frozed ABCP market just fikled for bankruptcy. The bailout there failed and so far Deutsche Bank has reneged on their guarantee. DB, UBS, RBS, Barclays, are all subject of rumour as ar all the major banks in real estate collapsing Ireland, and Spain. Icelands banks have virtually no capital propping up a massive book of takeover loans across 5 continents. Iceland's 400,000 population has no way of covering even one of their banks when it fails, and failure is highly likely if either the Us or EU go into recession. Some/many of the takeovers will end up going bust. Nevertheless, as today's LIR covers, the Fed just won Napoleon's battle of Moscow, and now Wall Street's on fire.