drmalaka

Soup Target; Cramer's Mad Money (7/22/08)

Cramer is a fool. Last week he said C was going to single digits. Which one is it? Before that he said stay away from banks when they reach single digits, now WM and WB are good buys?

As for oil, its drop is a bad macro event. Oil is dropping because of a fear that global demand will drop because of a global slow down. Duh, a global slow down is not good for equities, it is bad. Global growth is all that has kept this theoretical market going at all.

Bill Ackman's Plan to Save Fannie and Freddie

Whether you like the guy or not he has a good track record with what is going on right now.

He was on the monolines from the beginning, pounding the table, and you can't blame him for their demise. I assume he is right on this one too. These two companies have absolutely no value for shareholders. The only thing that will be left of these stocks is what the taxpayer picks up, which of course is bs becuase the taxpayer should not be saving equity holders.

Financials: Don't Believe the Rumors

Sorry to say but this article lacks any grasp of reality or economic sense. FNE and FRE are a perfect example. If 1% of their loans default that is $15 billion. Unfortunately that is almost their entire capital base. LEVERAGE. LEVERAGE.

Sad to think that you have been investing in this market and have no clue of what leverage is.

Invest based on this analysis at your own risk.