With Bear Stearns Gone, Is Lehman (LEH) Next?

LEH seems to be the popular target this morning on the news networks (and they should definitely be near the top of anyones list) but don't forget MS. That company has done all it could to keep itself out of the news. But for those of you who read this Technical Insights Blog, you know they have very serious problems that need to be addressed.

Here is an excerpt about level3 debt from this blogs posting from February 28th titled Weathering the credit storm with Merrill Lynch...

According to the latest statistics, MS has 250% of their equity in level 3 debt, GS 180%, LEH 160%, C 100%, while MER has only 38% of their equity in level 3 debt. Can you imagine 250%, 180%, or even 100% of your equity in an unpriced debt??? THAT IS INSANITY!

So along with LEH and the rest of the brokerage stocks, keep an eye very closely on MS. MS is only down 10% pre opening while LEH is down approximately 30% pre opening, and MS very well may be the next shoe to drop.

Source: By Technical Insights Stock Analysis