Thursday Outlook: There Will Be Blood

The FBI is investigating Freddie (FRE), Fannie (FNM) and AIG (AIG). It wouldn’t take a genius to figure out that they’re looking for--fraud and massive cover-ups. While the scope of all this is unknown, I feel like I’m back in 2003 waiting for executives at Enron, WorldCom and Tyco, to name a few, get carted off to the hoosegow. Greed has a short memory.

The inbox is full of mail from yesterday’s posting and basically everyone is of the same mind--this proposed bailout deal has a lack of disclosure.

The big news initially yesterday was another slick Warren Buffett deal whereby he gets a stake in Goldman Sachs (GS) and a 10% preferred dividend with warrants attached to convert to equity. Is this a good thing? It is for him, period. Can you get such a deal?

Yesterday the SEC added another dozen companies to the short-sale ban list including IBM. Here’s a list of them. Why add IBM? What’s the rationale if any? It’s become too random to understand and the folks at the SEC are out of control.

Speaking of shorting issues, I’ll be doing a webcast with ProShares Thursday at 4:15 PM EDT. This webcast is restricted to Financial Advisors and Registered Investment Advisors. To listen in follow the link and instructions below:

Link

Click on “Event Center”
Select “Creating an ETF Hedge Fund”

Speaking of ProShares some of their ETFs recorded dividend distributions today. This affected prices as those issues receiving dividends saw their prices reduced. I got plenty of email about that yesterday as well. To see the list, follow the link below:

http://www.proshares.com/funds/distributions

Markets moved around in trading ranges Wednesday as investors remain frozen like deer in the headlights. Volume was light but breadth remains highly negative. As the latter continues to build, so too do oversold conditions.


























































For those interested in alternative ETF assets from commodities to currencies, our September 18th podcast interview with Kevin Rich, CEO Global Currencies & Commodities Deutsche Bank, is available free and without registration here.


Go to page 2 - Commodities, Emerging Markets >>

Comment on this article >>