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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Tuesday, November 11, 2008

Market Fear may be returning

If you have been reading my blog, I believe we are seeing a strengthening of the market in the near-term.
However, it seems like the market isn't gaining the strength being looked for.
So the jury is out until we break out of the range I quoted on October 30th. See updated graph on right.

The fed also has delayed "Backing" Money Market funds with cash, as the government promised. I have said it before, and I'll continue to repeat myself, invest in government bonds, not money markets, until a year from now and we are completely out of the woods. The extra 1-3% isn't worth the risk. And as previously discussed, start scaling into resources as a hedge if the US government can't pay for all it's promises.

Other News
Government Mortgage company, Fannie Mae says 100 Billion NOT enough from Federal Government
Fannie Mae declares 29 Billion dollar loss in 3Q (looks like more honest accounting "found" after government takes them under their wing)
Goldman Sachs urged "Bets" against California bonds it sold. (Honor among thieves is broken)
American Express to become bank holding company (more parlor tricks to help balance sheets, to get free FED cash)
General Motors target price cut to ZERO by German Ratings agency. (What I find most interesting isn't GM cut to zero, but a foreign ratings agency broke rank and set target below US targets)
National City in final throws before failing, aggressively seeking buyer.
Fed defies transparency for 2T in collateral (surprised? I'm not, I predicted in previous post, nice try bloomberg. Everyone knows the taxpayer DOESN'T have the right to know where it's money is spent. )

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