September 17, 2008

So Much for Silence

      
What can I say? 

$85 billion dollar (is that redundant?) 
  ~~~~ bailout loan for AIG. 

Gird your loins.




       

6 comments:

  1. There is a common thread here. Fred, Fanny, and AIG had literally trillians of dollars in debt instruments to the Chinese. Lehman a mere 70 billion or so. You DO NOT want the Chinese and Europe divesting themselves of dollars in a retaliatory, though somewhat self-destructive, fashion. The carnage world wide would be almost unimaginable

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  2. Without the binding by the Fed, we would not have had a loin to gird. Add this to "Messiah's" tax plan and KYA goodbye.

    So one asks, what do we do? Other than pray, one must go into a “defensive” mode rather than just a “diversified” mode regarding investments. Due to the USA being in the worst financial crisis since the Great Depression, the world is going into a deep recession. Stocks are not particularly a good place to be right now, and that includes equity funds and real estate funds. In fact, what is a normal position of 60:40 (equity to bonds) should be more like the reverse (30/40:70/60). A defensive mode is that of “A” rated or better bond funds, short, mid and long term treasuries, cash (and lots of it) and with regard to equities, you need to be very, very, very diversified.

    Meanwhile, back at the ranch, we must recognize we are in a world wide economic recession.

    People were thinking Europe will hold us up……nope, they are going into a recession. How about India? Nope, they too are going into a recession. Well then, Japan and China. Nope, wrong again. China’s economy is slowing down and therefore, this has a direct effect on Japan. We are just about to witness a world recession.

    Holy shit Batman, did you say Recession?

    Sure did Robin…….. quickly, back to the lair.

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  3. ... but we can't actually do anything about this, can we? I mean, what makes you think yor so smart that you can write this stuff, but you don't say what we can do about any of it!

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  4. A trillion here and a trillion there…kinda like she loves me, she loves me not. Just hope the flower has a good many petals. Momma always said “chew your food real good.” Well to fix this problem, this behemoth financial cow is going to be chewing a lot of cuds before it is satisfied and no longer hungry.

    Imagine the unimaginable 'cause it is just around the corner. Lehman couldn't figure out what their paper was worth, Merrill kept saying 'we have found all the bad" yet after the Fed didn't rescue Lehman, Merrill called BAC and begged to be taken over. AIG has a scathing $85 billion loan at 11.5%...and next up is WaMU and Morgan Stanley. Either that clickity clackity you hear is the Fed printing more money; or, it is the train coming down the track on which you stand. Any guesses as to what is going to happen? Hunker down now, we ain't seen anything yet!

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  5. To Anonymous:

    Agree to a degree...If there is a depression. I was short oil til it hit 114/barrel and I went long again. I have been 30/70 (equity/bond) for months until yesterday when I moved to 40/60. The headline in my paper this morning was:"Stocks sink: People are scared to death!" I will be 60/40 by the end of the day. Possibly 70/30 at the end of next week.

    TxLostWolf

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  6. Don't stay too long. I too bought like a bandit yesterday morning and am luvin the swing. But, the swing is short cause the credit card debt and student loans are next up. The moves in the market are like Ike blowing through Galveston. We are in the eye of the storm and the next set of winds are going to knock you off your feet. Best lace them shoes up real tight.

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