helplessobserver

Dow / Russell Divergence: Signs of Cracks in This Rally?

Also the GS is looking pretty weak.  Heads and shoulders patterns need to be respected.  It is not only baseball where three strikes and your are out.

Wells Fargo's Mortgage Conversion Scheme: Delaying the Inevitable

For all you people who want to kick the people out of the homes take some time and go look at homes that have been taken over by the lender. Basements turned into cisterns, mold and peeling paint inside and outside, a target for vandals. An immediate lender outlay of $5 to $10k just for clean up is required. Since there is no market for the property it is best to keep someone in the house paying for electric power and cutting the grass. Call it "house sitting maintenance" which is designed to retain as much value as possible. An empty house is a truly wasting asset.

Loews Corp Q3: Reports Profit on Higher Revenues

The Tish brothers are excellent managers and you should note L is trading near its high when the DJ was over 14,000. Nuff said.

Buffett's Big Rail Buy: What It Means for Berkshire Shareholders

This buy shows Buffett only buys high quality first rate companies that have quality earnings. The new split B shares will be traded actively.

Buffett Buys Burlington, Does 50-1 Split at Berkshire

As an old ex railroad employee I find Buffett knows his railroads. The combination of the Northern Pacific, Burlington and Santa Fe makes up the greatest railroad empire in world history. All routes are complementary and in the Western US where growth will occur. These assets will generate profits when others are long in their graves.

Bove Finally Cuts Some Regional Bank Ratings

At first I thought Bove knew what he was talking about and made a little on BAC which he said would earn 4 - 6 dollars and trade in the 40s. Now with BAC retreating in rout step it look like he made a big blunder. Nothing new, but his credibility is fading fast.

Goldman Dissembling: Dark Pools et al

What can we expect from GS a master of the universe until their 40 to 1 leverage and ill thought out investment gambles brought them to their knees pleading for a rescue by the US Treasury. Until they pay back the taxpayer fully including the AIG payment, they should keep their mouths shut.

Is the Market Tiring of Banks?

It does not help that much of their loans are marked to make believe and next year FASB may require them to be marked to what they can be sold for. Also all the junk off the balance sheet needs to be brought home. It ain't over guys.

Wachovia: Support My Insider Trading Efforts or I'll Sue

This guy was stupid when he asked for inside information and is dumb and dumber if he thinks the courts will make him whole. Where do we find these people?

How Paulson Gave Goldman the Lehman Heads-Up

GS is about as ugly as it gets in conducting investment banking. Somehow they will pay and when it comes it will not be pretty.

Government's Economic Strategy: Cover Up How Bad Things Are

It's wet and rainy in the Los Angeles area tent cities. Resident rage and frustration is building. If I was a Wall Street principle I would be worried and hiring a first rate security detail.

Earnings Preview: BB&T Corp.

If the recent stock price is any indicator this high quality regional bank is nearly back on its feet. Real estate in Washington DC is becoming less of a drag so the Atlanta and Florida commercial and residential burdens will be easier to bear. CEO Kelly King is still stunned by the huge loan loss reserves he has to authorize. At least he does not now have to pay interest on the TARP funds anymore. Progress is being made loan by loan.

7 Things Goldman Can Do with Its Money Instead of Fat Bonuses

If GS is truly the "master of the Universe" they should take the loss on their AIG investment. If they don't they are just like all the other wimps who duck their mistakes and come crying to momma. I also think there is blood on their hands in the demise of Lehman and Bear Sterns. The final chapter in all this is still to be written.

Moody's Economic Moat May Be in for More Damage

Well Buffet was slow on this one but he is cutting his positions as fast as he can find suckers to buy his MCO shares. I agree with many commentators that there is no hell hot enough for the rating agencies.

Prepare for More Banking Problems

Where we are now the losses have been mostly absorbed by shareholder, i.e, a portion of my wife's IRA which held Wacovia stock. Large debt holders have not taken the hit they deserve and here in lies the problem. Once the commercial real estate walks on their debt the pension funds will have to scale back benefits. Look for trouble in the streets when this begins as the government, having used its resources to keep GS et al solvent, won't be in position to do any bailing.