Archive - Oct 23, 2009 - Blog entry

There is some interesting new data out on how recessions affect people who come of age during distressed times. Not surpisingly, recessions can have a lasting impact on young people and literally alter the way they view the world going forward. Therefore, it makes sense for investors to understand exactly who the financial crisis will influence and what that will mean for companies and products.

I agree with Barry Eichengreen, reports of the U.S. dollar's demise are greatly exaggerated. The mighty greenback will come roaring back, perhaps sooner than you think.

Here we go again ...

Reggie - I am a large hotel company and have been treated like a thief by the doo doos [he is referring to Reggie Middleton's notorious Doo Doo 32 (As I see it, these 32 banks and thrifts are in deep doo-doo!)].

Here we deconstruct the largest of the AAA rated Agency MBS offerings that the Fed just bought (at the bargain price of just under $9B). No mortgage insurance and no verifiable assets or income are all highlighted features for a non-trivial portion of these CA-dominated loans, 18% of which are cash out refis. Who says the taxpayer isn't getting his money's worth?

For all of you momentum chasing, non-calculating, never touched a spreadsheet, CNBC luvin', James Cramer watchin' bulls out there, I have a feeling you will be hearing a lot of I told'ja so's over the next 12 months.

Here is a quick look at the Ackman short, O's covenant risk and a comparison to the cash shortage at American Campus Communities. ACC's issues are more imminent!

No matter where the stock market rises to, no matter what accounting shenanigans are being pulled, and no matter what program traders or momentos are pushing for the moment, sooner or later (usually sooner than many realize) the fundamentals come home to roost. Enter Wells Fargo...