billddrummer

Don’t Buy What Wall Street Is Selling

Well said.

Beware the Financials Value Trap

The writedowns already recognized, and the ones to come, represent unwinding of profits that wouldn't have been booked in the 2004-2006 years if valuations had been correct then.

I haven't done the research, but I'd be willing to bet that a large percentage of those profits were gains on unsold positions. When the derivative markets froze last summer, the game was up, and the only thing left to do was to back out the profits. Which reduces equity, and increases the leverage ratios.

There will be an end. But no one knows when.

Wall Street Breakfast: Must-Know News

Candy and coffee are staples. No matter how bad the economy gets, a little boost from a candy bar gives a bit of a boost to a stress-filled life.

Wall Street Breakfast: Must-Know News

People in DC are in a government-sponsored cocoon. Mass transit actually works in that town, and many people don't feel pressured about gasoline because they use their cars only on weekends. My siblings live in and around DC and consistently take mass transit to and from work. As a result, they're oblivious to the impact of higher prices to the extent that their lifestyles are affected.

As far as other inflation is concerned, just don't buy food and energy. After all, the government doesn't count them in the 'core numbers anyway.