Sorting out the potential aspects of a rescue of Lehman (LEH) has become like working on the puzzle of a Rubik’s Cube. The front runner in the bidding is probably Barclays (BCS), but that raises the question of why none of Wall St.’s other major firms is not fighting for a piece of the action.

Perhaps the rule of "the greater fool" is at work.

According to The Times of London "Barclays’ key investors, Temasek of Singapore and China Development Bank, have shown willingness to back a deal that would put Barclays in the top tier of financial institutions."

The key to making progress toward a buy-out may still be having the US Treasury guarantee the value of some of Lehman’s assets so they do not swamp a buyer if there value continues to plunge.

Paulson cannot put up money for a Lehman rescue without appearing to have backed down from a pledge to keep the US taxpayer out of the picture. The average citizen may become tired of owning pieces of the nation’s large financial and auto firms.

If Paulson sticks to his promise, Lehman will fall to pieces tomorrow.

Douglas A. McIntyre

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