I could not get my mind around this deal. Why would a sovereign fund invest in CitiGroup? Why catch a falling knife? There had to be something else going on, and I kept wondering. So I did my research on the Internet attempting to get all of the possible perspectives out of this deal. I have a picture now, and one article sums things up nicely.
At Housing Panic there was a blog entry that talked about how bad the situation is, and how Goldman-Sachs is saying things are bad. I don’t trust Goldman Sachs further than I drop a ball without throwing. I have seen too many times when things that seemed biased (eg rating changes, etc). What bothers me are comments like the following:
In a grim assessment of the U.S. economy’s health, the investment bank said the Federal Reserve will have to cut its lending rate to banks by 1-1/2 percentage points to 3 percent in the next six to nine months to avert a recession.
Today’s German IFO was out and it was not as bad as was thought. And right now it would seem that the Germans don’t mind the higher Euro. It galls me that the German commentator said the reason why the Germans don’t mind is because they hedged properly, and others did not. The German CNBC commentator said the problem with AirBus is that they hedged incorrectly at 1.35, and thus their fault.
I invest using a combination of basic investor analysis, and technical analysis. Though my technical analysis library is nothing like you have seen before (don’t ask I am not sharing). Though I thought since Steve was talking about buying or selling I would share with you what my system is telling me.
Yes, I’m still alive, thanks for caring.
We’re in the middle of November and this is the time every year when it’s time to start making some important decisions on your stocks. Things get really wonky this time of year for no good reason than other people trying to cover their asses, so let’s take a look at what factors cause these next few weeks to be important in your decision making.
What concerns me and why I am ultra bearish with bull jacket is that there is a disconnect. Disconnects is when you see one thing, and experience another. Let me illustrate some disconnects:
Over the course of this month I will be posting a series of articles on the Chinese economy. Just so you all know, I have been studying here at Beida for the semester or as foreigners call it Beijing (Peking) University and have come across some interesting realizations about China and their economy. While I (more…)
Marc Faber was on CNBC yesterday. You might not know him, but as I live in Switzerland he is the Warren Buffett of Switzerland. What I like about Marc is that he is both a speculator, investor and very much a realist.
Yesterday he said the real problem was the financial industry that is in a massive bubble that needs to be deflated. Squawkbox looked at him and thought, Huh? Marc is actually quite right because there is an investing bubble like the dot.COM bubble.
You hear the news in the industry that you should buy global companies! Global companies with a weak dollar means more earnings! Folks, wrong, wrong, wrong! If you do the numbers quickly sure this argument sticks, but if you look a bit deeper then you will see the problems. The canary in the mine is Canada.
“Shopping is so much better here,” said Sam Theriault of Hartland, N.B., as she headed into the Wal-Mart in Houlton, Maine – just across the border from Woodstock, N.B.
Barry said something about inflation and how Bernanke is not measuring it correctly. Then another blogger jumped on it and replied that Barry does not get it. The problem with this discussion is that it is a discussion of concepts and no illustrations.
