raja

Is Merrill Lynch Throwing in the Towel on CDOs?

This is like slow poisioning, week after week. If they all tell us the truth, all these financial stocks will be in single digits. Look at Thain playing the market as he repeatedly has been saying once every month that they have adequate capital, only to raise more and more.

This is not over yet ! Dont let the size of the write downs fool you. Instead of writing down 40 billion at once (and you can imagine what that can do to the stock price) they are splitting it by giving us so-called lower write downs on a monthly basis. Talk of playing the market

Have We Bottomed Yet?

These financial companies are begging at the Fed Window daily for day to day survival. Then they have the temerity to tell us that we are in the final innings of the credit crunch.... only that the final innings is a long one - that will be extending for more than a year, and the after effects for another couple of years. Some have even gone to Tokyo with their begging bowl, as if to indicate that they cant get enough alms at the Fed window.

Why Yesterday's Optimism Wasn't Warranted

MER will announce at least 6 Billion in losses and it wont be over. Till the govt. does something big about subprime/ CDOs/Housing, the bleeding wont stop.

A couple of Investment banks need to go down - just like BSC did. That will cleanse the market and the true value of securities will be revealed. Remember how BSC ( and other inv. firms)was telling it was difficult to evaluate their securities due to the complex nature?? Well, overnight how did they (JPM and the Fed) decide that BSC was worth $2.00 - where was the complexity hidden, and unmasked just like that ??

Time to take a haircut - or should I say, completely shave the head?