We present two rather amusing research reports by then-Merrill Lynch Securities Broker/Dealer analyst Guy Moszkowski, discussing Lehman Brothers. Just because with financial analysts like this, who needs a shotgun Bank of America bail out. Oh yeah, Merrill. We also present a soundbite by Fox Pitt Kelton "analyst" David Trone, who, based on his extensive experience determines that David Einhorn, who nailed Lehman, is "looking at data from an inexperienced standpoint; investment banks are very complicated." Oh yes David, indeed they are. In fact, please give us your mailing address, so we can dispatch this particular piece of literature you so richly deserve.
First - an upgrade from Neutral to Buy in early June 2008.
Second - an upgrade from Underweight to Neutral on September 8, 2008 a week before the bankruptcy.
And the piece de resistance: the question of how Fox Pitt Kelton did not need a bail out as well. Note the "insight" by FPK "analyst" David Trone at 5:15 into this CNBC clip, which also shows how skeptics like Einhorn are usually spot on in the long-run. Let us paraphrase: any bet against the sustainability of the US ponzi will eventually pay off infinitely (even if that means the end of the world, thank you Hank Paulson and the entire Mutual Assured Destruction demolition crew). (h/t to Berlinjames02 for video).