CNBC is reporting that sources close to Treasury Secretary Paulson indicate that there will be NO government money available (no explicit bailout) for the resolution of the Lehman Brothers collapse given that the market has had time to prepare, having been aware of Lehman’s troubles for at least six months, and that the Federal Reserve's credit facilities are available for liquidity and an orderly unwind.Are the Feds about to learn a nasty lesson of the downside of creating a “moral hazard”?
