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September 2008



Fear, Greed, and the Abondonment of Mark-to-Market Accounting

September 30, 2008 – Comments (13)

So the SEC has just announced that banks will be allowed to "estimate" a value of all their debt that doesn't have liquid market pricing.  Enronamerica, anyone?  The dirty little secret is that if all these banks were to write down their assets to the price that a free market buyer would actually pay for the debt, more than a thousand companies would be insolvent.  [more]



I smell something fishy

September 27, 2008 – Comments (16)

There's something very strange going on here.  I spent 20 minutes Googling "bailout online poll" and I can't find one anywhere.  Think about that for a second.  How could it possibly be that not one of the major new organizations has an online poll unless they've been "suppressed"?  [more]



Marcy Kaptur for President

September 27, 2008 – Comments (4)

Another impressive rant by Ms. Kaptur:  [more]



If the markets show panic before the weekend, you'd better start believing in the PPT

September 24, 2008 – Comments (9)

The Plunge Protection Team consists of the Federal Reserve, the Secretary of the Treasury, the SEC and others.  I think it is becoming increasingly hard to argue that the PPT does nothing to manipulate the markets.  Banning short selling?  Nationalizing AIG?  What's not clear is to what extent they actually buy and sell various assets in the markets in order to quell panic.  Given the unprecedented actions of the various agencies, can anyone doubt they would buy bank stocks that are in free fall, sell gold short to avert panic, etc, etc, etc.  I certainly don't doubt it but you are entitled to your opinion.  [more]



Welcome to the USSA

September 23, 2008 – Comments (1)

Everyone must have noticed how the short ban is being expanded every day, right?  This whole short ban is pure stupidity.  If you can't short Washington Mutual, then of course Capital One is gonna go crying to Mama, "That's not fair!"  So they add Capital One to the list.  And since Capital One can't be shorted, Morningstar is the next crybaby in line.  Just get it over with now and ban all short selling of all companies. It's obvious that shortsellers are to blame for all our woes, not people who gorged themselves on cheap money at every level of America -- Federal, State, Muncipal, Consumer.  [more]



Are you kidding me?

September 23, 2008 – Comments (4)

Bernanke and Paulson want to pay more for toxic debt with taxpayer money than the market says it is worth:    [more]



This video is worth watching

September 22, 2008 – Comments (15)

I'm not convinced that this $700 billion (yeah, right!) blank check is going to get approved.  Massive picketing and protests are around the corner.  The more people think about it, the more they realize how kuffed up it is.  This video expresses my outrage pretty well:   [more]



Massive hedge fund blow-ups happening again

September 18, 2008 – Comments (5)

All the measures being undertaken at every level to attack those viscious short sellers are working.  Almost every stock with very high short interest was up HUGE today.  The short term effect of the blow-ups is to drive up garbage stocks on short covering and drive down good stocks on selling.  But you can be sure that dozens if not hundreds of hedge funds are in trouble right now.  When they get redemptions, that will cause further liquidation of positions, which overall should drive down the market.  [more]



My 8-year old daughter was just pick-pocketed by a billionaire!

September 16, 2008 – Comments (19)

My 8-year-old daughter was just pick-pocketed by a billionaire.  He walked right up to her in his $2000 suit and took $5 out of her pocket.  [more]



AIG Prediction

September 16, 2008 – Comments (5)

The government will bail AIG out by buying preferred stock that gives them 80-90% ownership in the equity of the company.  This averts systemic financial meltdown (for now) but also punishes the equity holders.  The government needs to keep sending a message against moral hazard, so they'll save AIG but not AIG's shareholders.



WM bankruptcy will be a self-fulfilling prophecy

September 11, 2008 – Comments (9)

If you have your bank account at Washington Mutual and see the stock trading at $2, shouldn't you go get that money out, pronto?  You may be FDIC insured for $100k, but why mess around with that process?  Go move that money!  [more]



All clear for Fed to drop rates to 1%

September 11, 2008 – Comments (11)

Now that the commodity bubble has popped, global growth has slowed and the dollar is "strong", the Fed will drop rates to 1%.  And all the lemmings will buy stocks and financials again.  It will be groundhog day again.  Look for it to happen at the next Fed meeting if the stock market doesn't turn ugly.  But of course if the S&P500 starts to test its lows again, we'll have the Fed riding to the rescue with another big suprise cut.  [more]



A little quiz

September 08, 2008 – Comments (9)

Here's a quiz:  Which was really new market information -- our newly socialist government taking over FNM/FRE, or the horrific economic data put out last week?  [more]