They were just talking Friday. Who can say about the far future, like Monday?NoWorries wrote:http://www.bloomberg.com/apps/news?pid=20601213&sid=au9lYw3WnbS8&refer=home
Whew! That's a relief. I was afraid things were going to look like 1929.
SoylentGreen wrote:I have been a freddie Mac/subprime auditor for the last 4 years. trust me, its gonna look more like 10/1929. Freddie and Fannie are all but insolvent. Indy is out of business.the problem....foriegn investment.Nobody wants to invest in the US anymore and I dont blame them.
BigTex wrote:
Does anyone else see propellant for more upward movement?
SoylentGreen wrote:90 US banks have been put on "FDIC watch list". I havent been able to find a list of these institutions. To be put on the FDIC watch list, loan portfolio delinquencies over 90 days has to be major and the reserves to deal with them, doubtful.
DantesPeak wrote:The stocks of many financial related companies may well eventually go to zero. But the stocks of unleveraged companies and especially natural resource firms may do well as the next wave of Fed induced inflation spreads.
The potential problem later with natural resource, oil service, etc., issues is that since mostly only companies making money pay tax, there will be a great effort to raise the tax on that group due to their 'windfall' profits.
BigTex wrote:DantesPeak wrote:The stocks of many financial related companies may well eventually go to zero. But the stocks of unleveraged companies and especially natural resource firms may do well as the next wave of Fed induced inflation spreads.
The potential problem later with natural resource, oil service, etc., issues is that since mostly only companies making money pay tax, there will be a great effort to raise the tax on that group due to their 'windfall' profits.
I think a lot of the bull market in natural resource stocks may be behind us, since the market seems to be figuring out slowly that if your costs are rising as fast as your profits, things may not be as rosy as they appear.
The fact that Exxon doesn't seem to have anything better to do with its profits than buy back its own stock is also not encouraging.
I think that we are in a very strange place right now, where there is an excessive amount of risk that doesn't appear to be priced into either the bond or the stock market.
What rational person would buy a 10 year Treasury bond at under 4% right now? That just doesn't make any sense to me.
DantesPeak wrote:However because the US Treasury bond market serves as a financial hedge to the even larger mortgage market, the actual yield of bonds at 4% reflects more the lack of investment alternatives and mortgage hedging than inflation.
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