End Of An Era
Stock plummeted today, down 373 points – are you enjoying the volatility? Up and down 300 to 400 each day??? If you have nerves of steel, you’re okay. Bonds were pummeled too, as they are very nervous about what this bailout means regarding inflation – so they increased in interest rates – counter intuitive.
Gold took off again, gaining $44 today. Now it’s worth $909 – nice is you own it.
Oil took off too, and this I don’t understand the logic. Oil gained over $16/barrel, and there is no obvious logic, other than “those nasty speculators” jumping in and kicking a dead horse.
In the news today….
The real news is that we have NO NEWS on what the details will be on the bailout plan. Keep your eye on this because it will move the markets more than anything else in the market in the near term.
Morgan Stanley and Goldman Sachs both turned into Commercial Banks today, giving up their Merchant Bank status. This makes it very easy for them to go to the FED’s Discount Window and borrow like all commercial banks. It is also an end of an era, as there are NO MORE of those stupid idiots who created this mess called Merchants Banks around any more. They’re all gone. This is a politically nice thing, as politicians can give cover to these firms as they aren’t the bad buys any more, they are just innocent commercial banks. Can you feel my heat on this issue??
Morgan Stanley sold 20% of itself to Mitsubishi Financial Group today. At least it wasn’t the Chinese.
And the news you won’t hear on the TV. The SEC is looking to make that list of financial companies that ‘YOU CAN’T SHORT’ longer. They are asking for who should be added to the list. The reason??? — to stop the meltdown in the market. They are exercising one of the lessons learned in the 1929 meltdown of the market – don’t have all those short positions around.
Here are Today’s numbers:
Dow Jones 30 Industrial - 11,015 (down 373 points)
10 Year Treasury Bond - 3.83% (up 0.06%) - an amazing increase in interest rate level.
Euro - $1.4780
Gold - $909 (up $44) - sorry, you didn’t get the buy price at $850 – just too much to worry about.
Oil - $120.00 (up $16.37) - Yahoo – anybody felling better now?? - oil is soaring.
Gasoline - $2.70 (up $0.10) - why hasn’t gasoline risen a lot too?? Just wait, it will.
Tom,
I’d like to know with the 700 billion plus dollar public bailout what we can do to the CEOs of the banks that ran their companies into the ground. Just like a product liability suit, can’t we demonstrate negligence and sue for damages? A thought/fantasy…
Andy