swaps

Recognizing an Abnormal Market

Wish I had just stopped buyng on New Year's Day. And cashed in some positions, but now some holdings are way down - think BDN, which I thought was a wiped out safe buy at 19, and AIB (what was I thinking. Even European banks with supposedly little exposure have been taken out with the ebb tide. I boguht because several experts said it was a good buy. And they are still saying that now, but I am down and now a long term holderl. But I am beginning to wonder if the banking financial sector has truly suicided itself and it will be declared as dead as some bankrupt railroad bonds from the 1800s.).

How can a usury system go on forever anyway? No tree grows to the sky, and no compounded debt instrument can suck up all the money without killing its host. But that is off topic.

Steve Ballmer's lament for MSFT reflects how irrational it all is. In a non-IRA account last spring I was looking at buying into Disney, which I already owned, or MSFT, both around 31 at the time time. My rational mind said buy MSFT but my gut said Disney, which I bought. Disney went up to 33, 34 and is now 32 still in this horrible market, while Microsoft is down to 27.

What a stock should be can far from what is can be in this panic environment.