A lot can happen in a month. A new president gets elected based on the mantra of change, but immediately starts staffing his cabinet with hardcore Washington establishment players. Citigroup gets a bailout. The Big 3 automakers fly in on their corporate jets and ask for a bailout but get denied. The Fed takes on [...]
After two years of constant buildup, we’ll finally learn who the next president of the United States is. I don’t know about you, but I’m sick of all the political games and ready for it to finally be over. It seems the market feels the same way, as it’s been rallying lightly on decreasing volume. [...]
Haven’t posted in a while because I’ve been sitting back watching the wild market gyrations, trying to get a feel for if the bottom is really going to drop out from under us or if the fall has run its course in the short term and if a bounce is on its way. I’ve also [...]
People want to know what caused this crisis, and more importantly, how to fix it. Everything we’ve heard from our leaders in Washington has been wrong, and that is why the market is not responding to the “rescue package” (read: Wall Street bailout) and to the billions of new dollars being pumped into the system. [...]
Mr. Rithotlz at The Big Picture brings us the story of Andrew Lahde, a manager of a small California hedge fund that returned 866% betting on declines brought about by the sub-prime crisis, and his resignation letter with a big F-U to those who deserve it. “May meritocracy be part of a new form of [...]
Karl Denninger has a great post on the fraud being presented as a bailout or “rescue package” and the level of corruption involved:
The Fraudacity Of American Finance - [The Market Ticker]
Some points:
Banks are not going to use the government-injected money to lend out. They are going to hoard it to “improve their capital ratios.”
Executive compensation [...]
I liked this post over at Infectious Greed by Paul Kedrosky:
Playing By the Rules is For Saps
A dystopic email comment from my very smart friend Jeff Norman of Alpha Centauri Capital Management here in San Diego:
Here’s my prediction as to what will happen:
If you played by the sensible financial rules all your life, [...]
From Reggie Middleton’s Boom Bust Blog:
Check out Reggie’s full post for a good look at the ridiculousness of the CDS market.
It seems to me this is just like selling call and put options. A new trader will come along in the trading pit and think, “Wow, I can make a pretty good, steady income from [...]
Interesting article from Marketwatch:
TODD HARRISON
Truth and consequence
Commentary: Have we seen the 2008 trading low?
By Todd Harrison
Last update: 12:01 a.m. EDT Oct. 15, 2008Comments: 106NEW YORK (MarketWatch) — A Chinese philosopher said, when it’s obvious that goals cannot be reached, don’t adjust the goals — adjust the action steps. Global central banks have taken those lessons [...]
New Bailout Price Tag: $2.25 Trillion Dollars - [Big Picture]
Americans balked at the pricetag of a $700 billion bailout, and let their Congressmen know, and for once, Congress listened and stood up and said “No” to a poorly conceived plan being shoved down their throats. Washington being what it is, the powers that be throw [...]
