Must-Know News - Jan. 23
By Daniel at 23 January, 2010, 6:32 pm
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“NOW IS YOUR OPPORTUNITY.
GET ON THE PHONE NOW and call your Senators. Tell them:
VOTE NO ON BERNANKE OR YOU’RE FIRED; INSTEAD, BRING BACK PAUL VOLCKER!”
Earlier this month, I detailed 25 US commercial banks that had trillions (with a “T”) of dollars’ worth of exposure to derivatives on their balance sheets. At the time, I stated that even if 4% of the notional value of these derivatives was “at risk” and only 10% of that 4% went bad, that you would wipe out the total equity at the five large US banks.
- 3) Watch this bloomberg interview with biderman and you will see what contrarian means; THE ONLY BUYER IN THE STOCK MARKET IS THE FED:
According to what this man said on the video, we could expect the Fed buying futures on Sunday because Obama doesn´t want another panic, especially, after declaring the war against the big banks.
Our investment strategies for 2010 follow from our forecast of continued economic weakness and deflation, as discussed earlier in this report and in previous Insights, especially our Dec. 2009 edition. We see the 2010 investment climate dominated by weak economic growth here and abroad, led by U.S. consumer retrenchment. More government fiscal stimulus and continuing Fed policy ease are likely in this setting. So is low inflation or deflation.
- 5) This could come true: The next economic perfect storm - should start mid February 2010
seasonal job losses will be posted
the next wave of ARMs will start to reset,
mtg rates will go up,
the next wave of foreclosures will hit,
the default on holiday expendatures will cause more chapter 7 and 13 filings,
retailers will know how little they made, and many will go chapter 11, or just close
this also be when the numbers are issued for the unemployment extension enrollment and it will “true” the unemployed picture,
the fed will start seeing how little revenue they got from business because of COBRA extensions and funding, and push new taxes
…
Regarding: SPY @ $115.06 (2010 closing high on January 19)
The following table provides the TOP 50 heaviest VOLUME trading dates since January 1, 2009. Whereas these investors/institutions are now able to take advantage of far, far more favorable LONG-TERM CAP GAINS rates — just recently available after 365+ days of trade.
“There ought to be a huge downside,” said Buffett, whose Berkshire Hathaway Inc. is the largest shareholder in Wells Fargo & Co. “Make it so that the CEO of an institution that fails, or goes to the government and needs help, really gets destroyed himself financially. Why should he come out any better than somebody that gets laid off as an auto worker at General Motors?”
Google Inc. co-founders Sergey Brin and Larry Page, who still own nearly one-fifth of the Internet giant, disclosed Friday that they intend to significantly reduce their stake by selling roughly $5.5 billion worth of stock over five years.
Representative Barney Frank, whose committee oversees Fannie Mae and Freddie Mac, said he will push to do away with the companies in favor of a different model for U.S. mortgage financing.
“The committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance,” Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee, said at a hearing in Washington today. “That’s the approach, rather than a piecemeal one.”
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