October 2009
October 23, 2009 –
I remember a blogger earlier this year repeatedly saying that Whirlpool is a good company to look at to gauge the health of the economy. I don't know if that's true, but if it is, things aren't looking so good. [more]
October 21, 2009 –
Was there some news that caused the market to drop so sharply? When the market rises rapidly in the morning, it seems that there's often a pull-back in late trading...I was expecting the Dow to hold about 10K though.
October 20, 2009 –
What does this mean for homebuilders? It looks like this is based mostly on continuing foreclosure problems. As foreclosure rates start to moderate, we'll likely see significantly higher mortgage rates as well, which will continue to put pressure on home prices. Continued price declines will likely prolong the foreclosure problem as well, as more homeowners simply decide to walk away. If this forecast for Miami holds, and then homes begin to appreciate 3%/yr., it would take 35 years for prices to reach previous highs. I think we'll see very high price inflation within 35 years though. [more]
October 19, 2009 –
I don't know if anyone has commented on this yet. I'd like to hear Fool's arguments to the contrary. What is different about today's market, and why will the final outcome be different this time? I can think of a few reasons why history might not repeat itself, but I also wouldn't be suprised to see the market crash before long. Bullish sentiment is high, but there's also quite a bit of talk about the coming crash, which leads me to believe that it won't be too soon...if it comes at all. [more]
October 14, 2009 –
"JPMorgan was also able to write up the value of some investments that have started to recover after souring during the peak of the credit crisis." [more]
October 02, 2009 –
I was just looking at the balance sheets of some of my favorite companies. For most of these companies, current assets exceed current liabilities by a decent margin...some by about 10%, many around 50%. I then decided to look at the balance sheets of some banks. For every bank I looked at, current liabilities exceed current assets by several hundred percent. I understand why there may be very different current asset to current liability ratios between different industries, but not this big a difference. How do these banks operate? [more]