Lehman to zero?

I've been predicting Lehman would be one of the next to fall in the financial markets. Back in June I had the following entry:

Na na na naaa, na na na naaa, hey hey hey, good-bye

Arivaderche, sayonara, adios, asta la vista, stick a fork in them. It's over baby. The fat lady is singing and she's sitting in front of an all you can eat buffet.

Looks like Lehman can't find anyone to pony up new capital and their stock today just got pounded by 40%. No capital...no dice. These guys have basically been a zombie for months, but the market is finally beginning to take notice. I wouldn't be surprised to see another shotgun wedding on the horizon. They can't survive much longer. As stated in my post in June...

This company will be lucky to be in existence within the next 6 months. It's guaranteed they are toast by 2010. The most likely outcome is they prop themselves up like Weekend at Bernies until they can manage a firesale to another sinking ship. Worst case scenario is we see another Bear Sterns attack on their liquidity forcing another "bailout". That would happen within 6 months if it does, maybe sooner.

How about a lot sooner. Nobody on the street will trade with these guys. They have no sustainable business and are mired in deflating mortgage and CRE related assets. This is an insolvent company and they will have a hard time finding a buyer that won't completely wipeout their current shareholders. Nice stock to have short...not fun if you had them long. You were warned.