"run on the banking system by the banking system."

"The current panic centered on the repo market, which suffered a run when lenders [whom he likens to depositors during Depression-era banking runs] required increasing haircuts, due to concerns about the value and liquidity of the collateral should the counterparty `bank' fail." These repo lenders also refused to rollover existing repos. Both actions created "massive deleveraging . . . resulting in the banking system being insolvent."

If I recall correctly, the total hole in Lehman's balance sheet was somewhere north of $300 billion, with Repo 105 accounting for ~$50 billion, unless that figure included both Repo 105 and 108. I got the impression that much of the rest was in held by The Fed as longer duration repos of some sort. Also that the Lehman bankruptcy was triggered by Morgan refusing to renew its transactions with Lehman. I do not know the nature of the transaction that Morgan refused to renew.

Unfortunately, I do not have all my sources individually bookmarked and don't have the time just now to look them up again.

"It is not necessary to have hope in order to persevere."