Unless you've been living in a cave for the last few months, it should be painfully obvious that this "credit crisis" or whatever you want to call it was never a Sub Prime problem, but rather a liquidity and leverage problem. Over the past several weeks, Thornburg Mortgage (TMA) has been the latest casualty in the game of "who can meet their margin calls." [more]
Living in New York City, you would never know there was a housing problem - prices keep going up and multi-million dollar condo high rises are going up on every block. [more]
Nope, not a misprint... but it sure makes you wonder:
4 Week T-Bill Yield: 0.12%
3 Month T-Bill Yield: 0.51%
Wow, guess we're not out of the woods yet...
It seems these days everyone and their mother is a value investor. People figure all they have to do is read some Buffett and Graham, take a company with x current earnings expected to earn y in the future, do a discounted cashflow analysis and you can "value" a company. Better yet, just go to Yahoo! finance and check the fundamentals - oh my god! the P/E is only 4 it's a screaming buy. Oh, and CNBC says we're still in a bull market and this is just a minor correction on the way to another record - woo hoo! Bush and Paulson say the economy is resiliant, and things will get better when the rebate checks for $300 are in the mail...it's time to buy.......Bear Stearns? [more]