Partly Sunny

Consider These Conditions When Using the Unemployment Rate as 'Any Kind' of Indicator

Well said:
'Given the deterioration in their businesses one could argue that these organizations could be over-employed by private market standards. I understand that Obama is trying to save jobs, but cosmetically helping these companies has been put in the “bailout” category in the U.S. budget, whereas one could easily argue that the money belongs in the “unemployment benefits” category.'

Moving Averages Offering a False Signal

I don't get it. You said: Conversely, an investor who bought the Dow when the 50-day MA crossed above the 200-day MA and shorted the Dow when the 200-day MA fell below the 50-day MA would have gained 4%.

When the 50-day MA crosses about the 200-day MA, isn't that the same thing as the 200-day moving average falling below the 50-day MA? Do you have link-for-idiots that can explain it?

Individuals May Be Deleveraging, but the Nation Isn't

Thanks. Well said and entertaining.
One suggestion: Next time you attend an investment dinner/seminar, stop by the bar for a quick one. It'll make everything more entertaining. And you can blissfully enjoy the great meal they serve.

To Create Jobs Quickly, Capitalize Small Business Lenders

Excellent article, Mr. Sunshine! Government seems focused on saving the large dinosaurs, no matter what the price. That price may be the loss of our ability to remain competitive. NImble and innovative small businesses are being sacrificed.

When Bonuses Aren't Discretionary

If bonuses focus on short term performance, soon no one will focus on the long term performance. R&D budgets may be cut to shore up current results.

No Relationship Between Shorting and Stock Prices

What are your credentials? Can you provide a link to more details on the methodology of the study? Who do you work for? Who funded the study? Do you or your sponsors profit from shorting?

Causality is often difficult to prove. You say: "we did not find any evidence that short selling causes securities prices to fall or to become more volatile." Did you find any evidence that it does not?

Micro caps are easy to manipulate, as the "caps" grow, the harder it is to manipulate -- but that doesn't mean it doesn't exist. It's just harder to prove.

Ben Stein Watch: November 8, 2008

If any, or all of US automakers fail, they will re-emerge leaner, better, and ready to take on the world. The industry, its infrastructure and its employee know-how aren't going away.

The Debate: McCain's Insane Mortgage Proposal

My kids, through middle and high schools, didn't get go on nice vacations or have closets full of the newest fashions, as did our neighbors. We paid the same for our house as the neighbors paid for theirs, although they make more money. We didn't use our credit cards for HELOC for luxuries. Now they're in trouble, although they still make more money than we, and McCain wants to give them a break?
It doesn't make sense on a whole lot of levels.

McCain's Economics

If all this started all those many years ago, why didn't George Bush fix it in the years he had a Republican controlled House and Senate? How much of this goes back to loans made more than five or six years ago?

Five Reasons to Buy the 'du (Baidu.com)

The three month average trading volume of this stock appears to be around 10 percent -- way too high. Could make one think there are a lot more shares outstanding than management is letting us know about.

From Yahoo Finance:
Average Volume (3 month)3: 3,576,850
Average Volume (10 day)3: 3,008,930
Shares Outstanding5: 34.24M
Float: 34.18M

The Bursting of the Non-Bubble?

If the graph compared tech stocks with housing prices the bubbles may look more alike.

GE May Spin Appliances Unit, Not Sell It

Over the past two decades I've bought several GE appliances for my home and other properties. I've never failed to be disappointed. Yet, I own their stock. I hope I can sell it soon. I don't want stock in the spin-off corp. I unload trucks for a living, but it's my understanding that if GE kept 50 percent of the stock, it would effectively have controlling interest of the spin-off and would consolidate it on GE's books for tax purposes.