El-Erian is El Pimp

I know not a lot of KnowGo readers are subscribed to the Wall Street Journal, but this Sunday was more "super" that a bowl game between the Packers and the Bears. On Wall Street, today was like The Oscars, Woodstock, Head of the Charles, Big Cypress, and Fashion Week all rolled in to one. Mohammed El-Erian of Pimco goes on CNBC and casually predicts the weekend's events with maybe a hint of British Hubris. Behind the stache you might even be able to pick up a bit of a grin. He's the CEO of PIMCO, which is the world leader in bonds. They don't do a single thing besides deal with bonds and other fixed income linked securities.

The news was big. Lehman Brothers is going bust. Chapter 7. The market is trying to get rid of all of the securities that have obligations from Lehman, because the firm might no longer be liable to uphold any of them (which makes them worthless). Lehman was one of the 10 largest banks in the country. No small potatoes. The other big story was with a tidy little bank called Bank of America and another shop down the coast called Merrill Lynch: they merged. And while we're here, we might as well address that AIG is trying to get a loan from the Federal Reserve, and a whole bunch of other banks are putting their money in a pool to help them stay afloat. Wish me luck in my job interviews!!!