Wall Street Breakfast: Must-Know News [View article]
"The U.S. government and the Federal Reserve have spent, lent or committed $12.8T to rescue and stimulus attempts so far. That's 14 times the $900-odd billion in circulation; almost equal to the entire 2008 U.S. GDP; and works out to $42,105 for every man, woman and child in America."
Perhaps it would have been better to give $42,105 to every man, woman and child in America.
Wall Street Breakfast: Must-Know News [View article]
On the Fed announcement, Kirk Shinkle has a good article analyzing it and questioning whether the stock market rally is sustainable: seekingalpha.com/artic...
On MER closing up a penny, the reason is that BofA's stock got killed on the deal, and since it was paying in stock, that meant that MER didn't close up. Additionally, no merger arb will play this (long MER, short BofA), because if the deal falls through, MER goes to zero.
The message from MER's failure to trade up is that the market believes that MER is toxic, and will either damage BofA or will go to zero on its own.
Wall Street Breakfast: Must-Know News [View article]
Perhaps it would have been better to give $42,105 to every man, woman and child in America.
Wall Street Breakfast: Must-Know News [View article]
seekingalpha.com/artic...
Surveying the Carnage [View article]
On MER closing up a penny, the reason is that BofA's stock got killed on the deal, and since it was paying in stock, that meant that MER didn't close up. Additionally, no merger arb will play this (long MER, short BofA), because if the deal falls through, MER goes to zero.
The message from MER's failure to trade up is that the market believes that MER is toxic, and will either damage BofA or will go to zero on its own.
Crunching Numbers: Why I'd Buy AIG [View article]