gabe borenstein

Will Berkshire Lose Its Triple-A?

Berkshire may very welllose the AAA ratingassome of the recent investment were logical and very selective ,the market paranoia continues to impact the stockmarket negatively and inflictsmonetary losses even on the investment choices made by Master Portfolio manager.
Will GE lose AAA rating?it doe4s not matter ,the GE's stock has been unjustifiably decimated ,reflection of the market Armageddon. which is well divesrified .
The real issue is why does any entity still writes the CDS's as the risk is demoralized investor without the ability to quantify the real risks (which are acceptable after the major market adjustment).
The other issue is ,why do I get on my PC ,a pictorial pop-out of Mr.Salomon-I already know that he iswrong.

What If Warren Buffett Is Wrong About the Markets?

The terms of capitali nfusion into selected companies are irrelevant as they are within the context of the market conditions.
The dollar strength is indicative of the global capital flows directed into
the U.S in recognition of our economy and system facing relatively lesser risks .
These flows into the dollar will accelerate as Europe and Asia as well as the Emerging markets are facing the real economic and structural Armagedden our Armagedden is over.
Comparatively speaking ,these economic zones are facing problems similar to American but are way behind the curve in resolving the issues.It is quite clear that even simplest of the global investors recognize the the magnitude of the coordinated response by the FED ,Administration and the Congress to the issues that were facing the U.S economy.
The coordinated plan just simply needs some time to have an impact on the U.S economy.
The magnitude of the selloff is reflective of the most pessimistic assumptions which will not materialize .
Clearly in the environment where every one is using the word Great Depression there is no point of arguing that only mild recession is discounted in the market.
There is such a thing as a monetary and the fiscal lag which requires some time for the current measures to take an effect.
In the meantime the SEC should reimpose the "freeze "on the shorts untill the implemented measures stabilize economy and eliminate the investors paralysis.
The FED should ease another 50 bps.
The mega dollar inflows should should be a positive jolt to the investment community ,as it is reflective of the relative universal confidence in our system and economy.
As the turbulence increases outside the U.S ,our markets will improve substantially as the dollar inflows will be converted into the dollar denominated assets.
Let's not get confused ,we have addressed our issues effectively ,it is the rest of the universe that is behind the curve.
What Switzerland represented once , the U.S represents now as evidenced by the dollar momentum.
I will say this again ,the only thing to fear is the fear itself.
The U.S economy and the markets are pised for the rebound.

Summer in the Citi - Fast Money Recap (5/2/08)

Perhaps it is time to focus on the broad market instead of perceived "singular"opportunitie... FED's aggressive easing to date ,will provide a broad market and economic momentum -but we need to allow for the lag.The fiscal stimulus is significant upward momentum enhancer as well .Using a multiplier of seven,the 140 billion dollars "rebate" ,becomes a significant trillion dollars stimulus.Between the two "jolts"and with some more accomodation from the FED ,we are heading for a major rebound. The record leveraged commodity speculation should not be confused with inflation.In real cyclical inflationary environment,the housing prices would be increasing at least with the rate of inflation.
Let's just focus on the broad stock market rebound and not waste time with individual picks .