Dick Fuld in the Clouds
Quick tag cloud of Lehman’s Dick Fuld’s testimony in the House this morning.
…
Original Source: feedproxy.google.com
Four at Four: Fickle and Confused
It’s all about perception, which is why a 360-point tumble in the Dow doesn’t appear so bad when compared with the prism of an 800-point drop earlier in the trading day. The last hours of trading lifted markets from their nadir, the volatility index declined, and of course investors remain in a holding pattern, still trying to discern what level represents the true value of shares. Equities found support as the Dow closed in on 9500 but investors continue to shift nervously from side to side, tapping impatiently, waiting for resolution. The VIX closed at 51.21, a new record going back to 1992. “I think the sentiment extremes are at levels for a short-term tradable bounce but I think you have to throw technical analysis out the window w…
Original Source: feeds.wsjonline.com
Paul Volcker on Market Regulation
Former Fed chair Paul Volcker has chaired a new report/survey on global financial market regulation. It’s very, very long, but it is worth reading. See here. One thing that jumps out, for better worse, is how much of an exception the U.S. model remains.
…
Original Source: feedproxy.google.com
B of A: Credit Quality Deterioration Accelerates
Bank of America announced plans to cut its dividend 50% and raise $10 billion through a stock offering, as it posted sharply lower profit for the period. The company said it added nearly $2 billion to its allowance for loan and lease losses, mostly for consumer loans, including unsecured consumer lending, credit card and residential mortgage portfolios. Here is Bank of America’s commentary on credit quality from today’s announcement:…
Original Source: feeds.wsjonline.com
Write-Offs: 10.06.08
$$$ Bank of America Profit Skids 68%; Dividend Halved [cnbc]
$$$ Lehman E-Mail: Execs Mock Idea of Bonus Cut [USN]
$$$ SEC: Dropping the Ball Since ‘04 [1-2]
Burned Again by Tech
Once again, investors that placed their hopes in technology have been burned.
In 1999, they bet on fledging technology firms because of the promise of what they could be. In 2008, investors put their money in technology because of the promise of what they were not. In both cases, the results have not been as desired.
The Nasdaq Composite Index hit an intraday low of 1777.02 Monday, before recovering in what was still ultimately a terrible trading session. The drop returns the average to 1998 levels, where the index hovered before it went on a lightning advance that pushed the average to 5000 before it collapsed in 2001 and 2002.
…
Original Source: feeds.wsjonline.com
Dendreon’s Move Still Leaves Many Questions (DNDN)
Dendreon Corp. (NASDAQ: DNDN) was an incredible performer today, and one which makes you wonder how well it would have done had the stock market not been so ugly. Its interim data from Phase III PROVENGE IMPACT trial showed that the IDMC observed no safety concerns, and it recommended that the study continue. The company itself has completed the planned interim analysis of the Phase III, randomized, double-blind, placebo-controlled IMPACT clinical trial designed to assess the safety and efficacy of PROVENGE in men with metastatic androgen-independent prostate cancer. We do want to outline how that despite this data being good and despite it being an active day trader stock again, Dendreon is not suddenly a slam dunk and still has many risks associated with it. …
Original Source: www.247wallst.com
Calgon Carbon Heads Into S&P Small Cap 600 Index (CCC, MDRX)
S&P’s Index group has just announced a planned index change in its S&P 1500 Index membership components. Calgon Carbon Corp. (NYSE: CCC) will replace Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) in the S&P Small Cap 600 after the close of trading on Friday, October 10. Allscripts is undergoing a nearly-completed corporate restructuring
that will leave it majority controlled by Misys Plc in a deal expected
to close by the end of this week.
…
Original Source: www.247wallst.com
Stocks: Are Retail Investors Buying?
For many years, whenever any global economy threatened to run out of steam, the US consumer would step in to save the day. Now, it seems, the US consumer is tapped out — at least when it comes to personal consumption expenditures.
But looking at the action in the stock market today and over the past week or so, I wonder if the indefatigable US consumer isn’t simply shifting his attention to stocks. Dow 10,000? Must be a buying opportunity!
…
Original Source: www.portfolio.com
Scenes from the Wreckage
Some screenshots from the carnage out there today: WSJ …
Original Source: feedproxy.google.com
Exchange Rates: Yen Uber Alles
Amidst all the equity carnage, some neck-snapping stuff going on today in exchange rates. 
…
Original Source: feedproxy.google.com
Do Small Businesses Need Their Own Relief Fund?
Some politicians don?t think the $700-billion bailout legislation signed Friday can bring relief to small businesses fast enough.
Sen. Chuck Schumer, D-N.Y., yesterday recommended that the Bush Administration set up a special temporary loan fund that small businesses having trouble borrowing money right now can tap. He suggested the government could make the loans through the S…
Original Source: feeds.wsjonline.com
Quote du Jour: Sam Glickenhaus
Quote of the day comes from 92-year-old investing legend Seth Glickenhaus: People are frightened and very angry. They feel that everything that has been done is to benefit Wall Street and these preposterous salaries and termination pay packages that leaders of these companies get, irrespective of how good or bad a job they have done. In some cases, they did a more miserable job than you believe. I am not so pessimistic about the future of the stock market. I am more pessimistic about the future of business. …
Original Source: feedproxy.google.com
Suggestions including prison time for investors who refuse to hold risky assets have been entertained by the House Committee on Oversight and Government.
“U.S. officials are examining ways to ease deepening strains in the commercial paper market, which have been hit by an unwillingness among money market investors to hold risky assets.”– WSJ
Any other ideas? Let them know.
…
Original Source: www.pheedo.com
Suggestions including prison time for investors who refuse to hold risky assets have been entertained by the House Committee on Oversight and Government Reform
“U.S. officials are examining ways to ease deepening strains in the commercial paper market, which have been hit by an unwillingness among money market investors to hold risky assets.”– WSJ
Any other ideas? Let them know.
…
Original Source: www.pheedo.com
What to make of Monday?
As the insta-analysis develops…
QUITE an exciting start to the week, was it not? Asian markets sink 5%, Europe is off 7%, and America looked headed for a 10% drop, only to right the ship at the last moment and cut the day's losses in half. The global nature of the sell-off is one disconcerting aspect of the day's events (and, in fact, of the crisis—we are officially in a global bear market). The continued dysfunction in credit markets is another. And growing signs of a global slowdown in the real economy is still another.World leaders are definitely attuned to the potential looming disaster. Even as Hank Paulson begins to crank up the operation of the Troubled Assets Relief Program, other steps are being…
Original Source: http://feeds.feedburner.com/economist
Wild Ride!
Man, was that not an insane day?
We did a little buying through out the day — but not a lot.
Toe in the water for a trade . . .
What did you do ?
…
Original Source: feedproxy.google.com
Whither Stabilization?
A recurring meme in the mainstream bailout chatter is the idea that the government should intervene to “stabilize” the financial system. After all, the odious piece of legislation rammed through Congress last week was titled the “Emergency Economic Stabilization Act of 2008.” Today, the AP reports, “President Bush’s top economic advisers vowed to work with their counterparts around the world to restore confidence and stability to financial markets roiled by tight credit and worries about a global economic slowdown.” The Treasury Department is even calling its n…
Original Source: blog.mises.org
Who Wants To Work For The Bald?
Steve Liesman reports that the treasury is seeking accounting and auction managers, as well as securities asset managers and whole loan asset managers. You must have your bids in by Wednesday at 5. “Winners” will be announced on the 11th, the same day you’ll start working on this stuff. Get cracking.
Asset Managers Selection Process [PDF]
Suscribe