Archive for February, 2009

Credit Market OverviewFebruary 27 2009I have offered in this space recently historical evidence of how fiscal stimulus is not the right prescription to bring the economy out of its current malaise by quoting FDR’s Treasury Secretary, Henry Morgenthau’s dairy entries including: “We have tried spending money. We are spending more than we have ever… »

Credit Market OverviewFebruary 26 2009Robert Rodriguez, CEO of First Pacific Advisors, stated during a Barron’s interview recently that his investment mantra was: “Winning by not losing.” True to his word RR had up to 45% of his main fund in cash at certain points last year.
Although the VIX is down from its 52.62 close… »

Credit Market OverviewFebruary 25 2009
It was good to have things back to normal yesterday. Consumer Confidence, projected at a lofty 35 came in just 10 points below at 25; S&P cut Latvia’s credit rating to BB+ putting it in “Junk” land and the S&P saw all of the good news in those events and… »

Credit Market OverviewFebruary 24 2009
I read somewhere recently that people in government don’t spend much, if any, time gathering information from the media as the information they do process comes from more selective sources through established channels. I can only interpret that to mean that they get rid of those that don’t agree with their… »

Credit Market OverviewFebruary 23 2009For anyone who is not a Citibank customer it is now cheaper to buy the stock than get cash through one of their ATM’s. Citigroup (C) closed at $1.95 on Friday, the non-customer access charge for cash is $3.00. For you history buffs the last time C was… »

Credit Market OverviewFebruary 20 2009
News of “The Donald’s” bankruptcy filing in Atlantic City was immediately countered by “The Donald” saying it was only a licensing deal representing less than 1% of his net worth. Representing a little more than 1% however is his latest project in Chicago, which brings to light the problems in… »

Credit Market OverviewFebruary 19 2009
“In some ways, what the government says or does is becoming less important, since the market wants to see proof that the stimulus is working and the economy is bottoming.”
Although this quote by James Paulsen, chief investment strategist at Wells Capital Management, was made in time to be in last Saturday’s… »

Credit Market OverviewFebruary 18 2009
One of the keys to successful investing it is said is to follow the “smart money”. This used to mean (before 2008) do what the professionals do when they do it, not what the individual investors do when they do it.
In this context a story in yesterday’s WSJ seems apropos… »

Credit Market OverviewFebruary 17 2009
In life, business and of course trading it is always good to learn form your mistakes. It appears Moody’s has taken this to heart as after having rated a whole bunch of mortgage backed paper AAA that probably didn’t deserve a single “Z” (not that there is such a rating) they… »

Credit Market OverviewFebruary 13 2009
The line “Misery acquaints a man with strange bedfellows” in William Shakespeare’s play The Tempest is best now known to most of us as in its modern form as “Politics makes strange bedfellows”.
The truth behind this statement in either form gathered strength yesterday as news of a meeting hosted by… »