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Stocks Plunge, Bears Still Silent


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jickiss is back!

 

 

 

jickiss is back!

 

 

 

and Dear Sudaca, tanks for putting up the link to PIMCO s commentary.

 

Where is the 2008 forecast from these guys. How gross not to have one up yet.

 

your jickiss thinks that the PIMCO commentator ought to strap in and drive North up to Mr. William O'Neil's offices and go over the stock Mo Mo theory of investing a bit more deeply, The promotion of which has done more to influence "thinking" in the Stock Market, the Real Estate Market, the Art Market, and even the commodities market than virtually any other "idea source" since the gold window was shut in the days of Nixon.

 

when that MoMo movie that helped to "create the values" gets run backwards, Watch Out, indeed.

 

no corporation, no city, no State and no national government ever expects to pay anything off again, ever.

 

but the markets of the world will show, in the end, that Velocity is the closest thing on earth to the truth that exists.

 

here is the key excerpt from the PIMCO person:

 

"It?s called the Speculative Unit, Bun. It comes about when people are so confident in stably rising house prices that they find the Hedge Unit to be, as you put it, boring. Technically, Minsky defined it as a loan where the borrower?s cash flow is sufficient to fully service the debt, but not amortize the principal. Thus, when the loan matures, it must be re-financed."

 

yup. re-fi's = the key support for all of the debt.

 

thimk!

jickiss!!!!!!!

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Rent for $850 monthly, or "own" for $3,000 ?

 

After she bought the duplex, Marquez's monthly housing expenses jumped from about $850 when she rented to $3,000.

 

In order to afford it, Marquez had to stretch her loan out to 40 years, fixed at 5.1 percent, with the first 10 years being interest-only. Once this period ends, her total monthly payments will jump to nearly $4,000.

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But she is building equittee.

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SALLIE MAE INVENTS THE REVERSE SHARE BUY BACK

 

In offering documents filed Thursday with the Securities and Exchange Commission, Sallie Mae said it would use about $2 billion raised through the stock offering to buy back 44 million shares at $44.25 per share. The remainder would be used for general corporate purposes. Sallie Mae had 414.1 million shares outstanding as of Sept. 30.

 

Taken together, the offering and the share buyback would add 26 million new common shares.

 

So in order to buy back 44 million shares at double the market price it issues about 70 million shares.

 

Sounds logical to me. :ph34r:

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heard Hugh Johnson whining on the radio yesturday about the Santa Claus rally not being all everyone had hoped for...

Like retailers, all the e-traders (the Wall Street equivalent of Target) were looking for better bargains, and didn't find them. The yang of the Santa Claus Rally yin.

 

John Q's tired of investing in the CEO's bonuses.

 

Such behavior used to be called a "market". Lower prices are now called a "disappointment".

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I assume that you know that you would get the same reaction from a man uninterested in these types of matters as well.

 

Of what relevance is a person's sex when it comes to the economy? If they're not interested, they're not interested. Male, female, or other. It's irrelevant.

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But Herrr Dok,while agreeing with you 87% I must call your attention to the opening generaliization where I refer to "WE" Amerikuns,,,,which collective pronouns, if examined carefully, both include all thirteen sexual dispositions within the current erotic geography of America....and I also reffered to Infantilism, and Adolescence two genera presumably including both sexes which presiumably involves including myself both times as well.

 

Of course there are abundant crowds of male Ignoramuses ignorant collectively of countless subjects,let alone economics:I, being a male, who would know better?

 

I presumed the genera implicitly included all sexes...

 

But for economy's sake I ,upon occasion, exerciseing the ancient admonition:Brevity is the soul of Wit " and,in the process, risk missing the mark terribly; for which I plead guilty and do apologise...

 

beardrech :ph34r: :ph34r: Rarely is it the case when I CRITICISE ANYTHING without,at some level including myself.....Or else why the mantra "It takes one to know one....

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I don't always agree with McCulley, but he sure knows how to write about complex stuff in a way any mortal can understand. 

 

http://www.pimco.com/LeftNav/Featured+Mark...BF+Jan+2008.htm

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Suds

Also from Minsky:the shortest descriptin of the typical business cyclle:it has three phases:

 

Investment;Speculation----PONZI!!!

 

beardrech :ph34r: :ph34r: Similar in length to Three Strikes & your OUT.

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MONEY FOR NOTHING AND YOUR BONDS FOR FREE

 

Buffett to Start A Bond Insurer For Cities, States

By Karen Richardson

Word Count: 1,330  |  Companies Featured in This Article: Ambac Financial , MBIA, Berkshire Hathaway

 

Warren Buffett, seizing a chance to profit from turmoil in the nation's credit markets, is starting up a bond insurer that aims to make it cheaper for local governments to borrow and promises to be a tough competitor for the industry's embattled incumbents.

 

The billionaire investor's Berkshire Hathaway Assurance Corp., set to open for business today in New York state, will guarantee the bonds that cities, counties and states use to finance sewer systems, schools, hospitals and other public projects.

 

The new venture, backed by an almost-certain triple-A credit rating, is likely to be cheered by municipalities and municipal-bond investors ...

 

It was only a mater of time before someone with a AAA rating jumped in and started insuring all those lovely tax free municipals.

 

What a great business.

 

Municipals are a much safer bet than any other US bonds from a default perspective.

 

I regard them as safer than Federal bonds.

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