And to answer the original question about bailing out Lehman?
I don’t know, but they bailed out Bear Sterns and Frannie, but the latter was a problem caused by the Government. Still, doesn’t mean they should have bailed them out, especially when Paulson said institutions must be allowed to fail.
So then I ask myself, why wouldn’t they bailout Lehman?
One, they really can’t afford to b/c they’ll need to bailout WaMu. Two, Lehman is probably not regarded as critical to the market as Frannie, but then they’re not all that different from Bear and they sponsored that bailout so who knows.