andys2i

http://www.savingtoinvest.com

35 Comments

    • Stocks Plunge, Dollar Surges [view article]
      A vicious deflationary cycle is about to ensue and the US dollar is one of the few relatively safe areas (thanks to treasuries). Still be are about to be slammed as follows: Banks worldwide, stung by $588 billion in write-downs related to toxic assets -- especially mortgage-related securities -- will further reduce the flow of credit, strangling growth. That will push house prices lower, forcing additional losses and making banks even more reluctant to lend. As the credit crisis worsens, businesses will find it almost impossible to raise prices. They will then be forced to close or start laying off employees, which will in turn reduce consumer demand and thus create a vicious downward economic spiral. See more commentary at : .www.savingtoinvest.com... Oct 06 02:04 PM
    • The Deal's Getting Done, But Will It Work? [view article]
      The common slogan from both parties and presidential candidates in justifying the bailout has been about helping “main” street, rather than Wall Street. But will the mother of all bailout packages really help? I have posted two contrasting articles on the long term fallout from the bailout and also why it could be profitable for taxpayers. Based on the information to date, my view is that in the medium term we will probably stave off a recession. But a long term recovery hinges entirely on home prices and the related mortgage debt improving by 2010, otherwise the current bailout will do little do prevent a much more severe recession. So could the government have taken a different approach to resolving the current financial crisis? Perhaps and here are some of the other “extreme” economic fixes that could have been undertaken instead on this mega-bailout. Sep 29 11:45 AM
    • Leverage 101: The Real Cause of the Financial Crisis [view article]
      Thanks for all the comments folks! Interesting reading and learned a thing or two. Sep 27 11:24 PM
    • The Fed Is Doing a Good Job, While Goldman Might Stumble [view article]
      Goldman stumbled and market crumbled! No one is safe and perhaps cash under your mattress is the safest investment now. Sep 16 09:54 AM
    • An Optimist Looks at the Market [view article]
      Thanks for everyone's comments. Probably wasn't the best weekend to publish this post given the bad news around the financials over the weekend. Hey - I was just trying to look on the bright side of things amid all the negativity. I am realistic enough to know that it will take time for things to work themselves out but if I was as pessimistic as some of the commentors I would have sold my entire portfolio off and keep what cash I had left under my bed! Sep 15 09:44 AM
    • Unintended Consequences of the Fannie / Freddie Bailout [view article]
      All I can say is just be careful about investing into this temporary bubble. As I posted recently, the impacts and outcomes of this bailout have a long way to go still. Sep 08 02:46 PM
    • Fannie and Freddie: The Heat Is On [view article]
      Media beat up, in order for some big time shorts to make money. I covered this in a recent post, but suffice to say that is it a concidence that the week after the short sales rules was lifted on financials, that an article from Barron's came out which was the main catalyst for todays news and reactions.. Aug 18 02:26 PM
    • Fannie, Freddie Shareholders Will Be Left Holding the Bag - Barron's [view article]
      More media hype. Put on your seat belts again and enjoy the roller coaster ride in the next chapter of the thriller/horror story that is the Financial Crisis. For your safety another government bailout maybe on the way, thanks once again to the ever suffering American tax payer. Of course the investment banks and wall street vultures (i.e. hedge funds) will continue to make money shorting the shares of these financial companies as they go down, and also when they have their obligatory spike in a couple of days.

      Aug 18 10:51 AM
    • Crude Sell-off: Solid Entry Point into U.S. Oil Majors [view article]
      Great artile and like you I think the respite is temporary. As I discussed recently, Oil prices long term will go back up due to the following factors which relate well to the ones you have listed.

      - The planet remains in a state of energy stress. Asian countries are adding an estimated 50,000 new cars per day to their roads. Adding this growth plus that from other oil based consumables, will provide a huge demand side effect. With supply limited and growing very slowly, this will lead to a steep rise in prices.

      - If China's oil demand growth rate continues at its current pace of 6% to 7% per year, China will use 20 million barrels a day by 2020 - about the same as what the U.S. uses today. And by 2030, China would be up to 40 million barrels per day - twice what America uses now.

      - Tensions between Iran and the U.S. and other Middle east countries don't look like abating in the longer term despite recent diplomatic efforts and a lull in tensions.

      - We'll drive more, fly more and waste more. As prices fall, the alliance of environmentalists and consumers, brought together by pain at the pump, is already coming apart. When has is below $4, people will think of it as a relief and unfortunately most will go back to their old habits.

      - Renewable energy is still a long way from being a viable alternative to oil in terms of widespread usage. The world economy cannot and will not quickly convert from an oil-based consumer to a blend of other energy options such as natural gas, solar, wind and so on
      Aug 08 02:33 PM
    • Housing Crisis Likely to Wipe Out Two Decades of Family-Earned Wealth [view article]
      Lots of conflicting housing information out this week. As I wrote recently, I think the first report is more accurate in terms of the major loss of wealth for Americans. Aug 07 10:59 PM
    • Why the 2008 Housing Relief Bill is No Relief [view article]
      Thanks for your all your comments folks. This article sure did stir some controversy. I'll write a follow up and incorporate, some of the comments at my blog : www.savingtoinvest.com, where this article was orginally published. Aug 06 12:37 PM
    • Why Visa Should Thrive [view article]
      I've got $95 visa calls and just post-IPO shares in my portfolio - www.savingtoinvest.com.... So am hoping for a good resullt. However, am probably going to cover myself in case of bad news by buying some puts. Jul 29 02:35 PM
    • Housing: No Bottom Yet in Sight [view article]
      Great article and I just recently wrote about my (negative) views on the bill. Your points just conifrm why the housing relief bill will fail. The government again is trying to spend us out of an economic crisis, which is unlikely to work and only add to our national debt and the continued devaluation of the US dollar. Only time and a cleansing of the economic system will resolve the current mess.

      We talk about consumers getting out of debt, what about the government who seems to love debt more than anyone else.       Jul 28 11:18 AM
    • ABB / Kuhlman: Sweetspot for the Power Grid [view article]
      What do you think about the recent earnings and share price fall? Is this a good opportunity to buy the stock. I have been looking at this and AECOM. Jul 24 11:48 AM
    • Apple Investors Nervous as Earnings Call Approaches [view article]
      I am already down 2K on my apple investment and as I lamented in a recent post, I wish I had the bought the stock this week, rather than before the iPhone. Anyway, I will wait and see if my paper losses grow or disappear today. Jul 21 09:25 AM
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