endoftheworld

Baltic Dry Index Tells the Real Economic Story

It could be there is excess shipping capacity in which case shipping prices will not keep a linear pace with the materials/commodities

The Coming Economic Collapse, Part 2

sounds like you should be shorting the hell out of the market then! we should be getting out our Mad Max suits and get ready to prowl and hunt on the soon to be barren wasteland called the US ;)

The Worst Case Scenario (Someone Has to Say It)

FANTASTIC MOVIE SCRIPT! - "28 YEARS LATER" - Who needs viruses when you have debt?

The Last Five Years in a Single Chart

Yes, so? basically all that's saying is volatility increasing as the bank's capital cushion is eroded.. so?

Fair Value for the S&P: It's Not 440

If some company pays $1billion for a company that's later not generating any value, its goodwill should be written down. Technically its a non-cash writedown, but all NON-CASH charges have their origin in CASH. Its just that the initial cash outlay is "amortized" over a longer period of time from an accounting perspective. Either you should value companies on the basis of cash flow alone, or GAAP earnings. Trying to mix the best of both worlds will lead to a ridiculously inflated answer. This is basically what happened with stock option expensing. If someone walks away with $10m in stock, is that non-cash? where did that "non-cash" come from? if you get paid in gold, that'll be non-cash too - should we exclude that as well?

Goodwill/Intangible impairments only exist because the cash left a long time ago, and only now are the investments being realized as duds. If the company were to develop their own products internally, that'd be a real cash outlay - only now the company is prepaying a lumpsum for a ready-made solution (the acquisition). You should then either report a billion dollar loss and use that in your "normalized" earnings or use GAAP all the way consistently.

Markets Will Hit More Lows Before They Bottom

this guy is funny :) ... why's he busy writing articles and not cowering in a bomb shelter? these clowns should put their money where their mouth is and short the hell out of the market.. problem is they're full of more bullshit than a bull... short term market prolly will go down, unemployment may hit 8-9%, but as soon as the real estate market bottoms out to below 2001 levels, buy anything in sight, or even before it... as art cashin said, problem with betting on the end of the world, is that it only happens once :)