Thursday, September 18, 2008

Yesterday and today GE was yielding close to 6%, Goldman Sachs this morning sold at around $86 below its book value of $100. Ben Stein the Pollyanna economist finally threw in the towel. Its also option expiration week and nobody uttered the word "bottom" today on CNBC. So this can only mean one thing, Buy! Buy! Buy! Buy quality names, not the dogs.

Tuesday, September 16, 2008

A glaring example of how we got into the trouble we are in is personified in an article in today's NY Post. A "Wealth Manager" and I use the term lightly, lost more than $6 million dollars of his own personal money in Lehman stock. Talk about not practicing what you preach. How did this guy get a job, let alone accumulate $6 million? These are the imbeciles we entrust with money? To read the entire article, click on this link, its too funny for words.

Monday, September 15, 2008

It has come to my attention that my posts have become too dark, too serious. Its time for me to lighten up. So here's food for thought: The zit faced long haired teenager donning a Grateful Dead T-shirt who mows your lawn has a better business model than the Ivy Educated pinstriped suit complete with tortoise shell glasses and a Blackberry. The gap toothed freckled faced pig tailed 7 year old takes in more profits from her lemonade stand than Lehman, Merrill and AIG combined.

More questions to ponder--Are the new baseball stadiums being built by the Mets and Yankees in trouble? How many cancellation notices will the Mets and Yankees receive from season ticket holders who can no longer afford those over priced season plans for 2009? How many strip joints will be closing? How many charitable donations will be reneged?

Sunday, September 14, 2008

"You've got to accentuate the positive Eliminate the negative Latch on to the affirmative Don't mess with Mister In-Between You've got to spread joy up to the maximum Bring gloom down to the minimum Have faith or pandemonium Liable to walk upon the scene" written by Johnny Mercer/Harold Arlen.

The above lyrics sum up the Pollyanna talking heads on CNBC. Buy, Buy, Buy!!! Its a bottom! I have heard more about bottoms than in a J. Lo music video. Then when something tragic happens its a surprise, because Wall Street is programmed to lie. Lie about solvency, lie about risk, sweep all potential negativity under the rug. Well now Lehman is belly up, Merrill is taken over, Wamu is on the ropes as is AIG. But if we went to the videotape and pulled the CNBC appearances over the past 12 months, all you would hear is, "There's value here. Its an overreaction. There is plenty of capital available. Buy! Buy! Buy! This watershed event will convert the Pollyannas, make them panic. Then and only then can we buy, buy buy---when these shameless imbeciles are on the unemployment line.