Barquish

Here's How This Week Could Unfold

Funny thing is that the Sovereign Wealth Funds who are denominated in USD with the current 25% drop have actually ended up being somewhat balanced wit the USD appreciation against the value of the currencies of the origin of the funds.

I think that this market situation may have additional elements to it that were not quite in any previous market crash insofar as the fact that Chinese and Middle Eastern money are providing a significant contribution to the US market.

Puts Instead of Shorts? Today's Activity

J-unit Steve Liesman reported that Market Makers are now able to short any stocks they write Puts for.

Puts Instead of Shorts? Today's Activity

The outright ban on shorting was a knee jerk reaction and one that will in fact be seen to have been wrong (not completely) and certainly not fully thought through.

Thankfully some semblance of reality has arien to allow Market Makers to short stocks where they write Puts. Now to scream and say this should be banned also is 100% wrong, because those long a stock in these volatile markets need a mechanism to insure against any downward pressure on their portfolio.

That said this may see an increase to allow shorting by the backdoor. I have been long many financial stocks and have been grateful many times for the ability pt buy and sell puts depending on how I manage my portfolio.

So while I welcome some stability I do think that by allowing market makers to short it will reduce some volatility and also allow some orderly way to arrive back to being able to short stocks. If not then there would be such a massive pent up demand for shorting a stock when the ban was lifted.

Grading Paulson and Bernanke

Who else would do their job better?
Who would want their job?
And finally what do you think you would have done differently?

It is far easier to judge than to do something that you know you will be judged for the rest of their lives. They did and do their best as would be expected of them.

It is amazing that no one really complained until they started to see their false wealth disappear when it was realized that the loans would have to be paid back.

Apple Math: Market Share over Margins

While I have no argument with your math, I do have an issue over consumer sentiment. 58 million iPhones by December 2009 is optimistic. There is also the price erosion and potential competition. I would consider $120 as a good buying opportunity but find it hard to justify a buy in at these levels.

Five Great Quality Companies: Are They Too Expensive?

There is something to be said for anything that is growing rapidly in these ever inflationary times and those 5 names appear safe bets in the short term having already reported. At some point a more realistic approach to value investing will find them at prices worth jumping back in - but not here.