Yes, I will admit that the quality of quantity of truly bad news is decreasing. However: the US GNP is still deflating, and still in the midst of a true depression; the bad news is still coming, but just a little more pastel than before. Unemployment is still increasing. The U3 will probably get really close to 11% before going back down. The U$ is weak, and this shows no sign of changing. [more]
I saw some really screwy numbers in the press, and some even screwier stories based on these numbers. I spent some time on the official S&P website. Not only did I discover the real story behind the nos., I found out that many financial reporters do not do their homework (surprise, surprise). [more]
Watching the price of commodities this week was like watching a sci fi movie satire "Attack of the Bubble People". [more]
Reading some newswire stories about derivatives reform, already modest, are being watered down further, I then realized that the odds of reversing Gramm-Leach are zero (no surprise, since they are making $B’s daily with these things). What would it take to undo it? In 1933, Glass-Steagall was passed, saying that commercial banks could not play around with equities since they were too risky for depositors’ money, thus was born the investment bank. In 1956, the Bank Holding Company Act was passed, and Transamerica had to disgorge BAC. [more]
Ford and Japan. After cash for whatever expired, I was very curious to find out what effect it would have on car sales. I was quite surprised. Ford and Japan sales declined 5-10%; no surprise. However, GM and Chrysler dropped a whopping 40%. Guess which companies my money is on for long term survival?
I officially do an endzone dance on Saturn's grave. I mocked Saturn as classic symbol of GM's failure as a company in a capitalistic nation. It was to be the savior: GM was getting its sales rear-end kicked up and down the salesroom floor, and Saturn was to be GM's future and a true killer of Japanese cars. [more]