Articles

Nouriel Roubini, the Dr. Doom of economists, who correctly predicted the credit crisis 18 months ago, is now saying that US banks are insolvent.

The $300 billion bailout has been great for banks. Many have taken the TARP money and set is aside for toughter times or for future acquisitions. Many banks admit the public money has been a windfall that they feel no pressure to spend in any particular way. Most are also saying that they have not changed their behaviour because of the money. And what was the point?

Ken Lewis saved Angelo Mozilo from doing a perp walk, and gave Merrill a sweetheart deal of century, but also took down the largest financial institution in the country and now has put the entire US economic in still further jeopardy.

The disintegration of General Electric, once the nation's largest company, will be spectacular and it will be swift.

I've been trying to move large amounts of money out of Smith Barney to the higher yielding online savings and CD accounts listing on this site. This week, Smith Barney made it very difficult.

For some time it looked like Bank of America might fly over the banking crisis and actually prosper by vulture investing in Countrywide and Merrill Lynch. Now, it looks like it is choking on the bones it tried to swallow. It's stock is at its lowest point since 1992 and the future doesn't look so bright.

I don't care whether Steve Jobs comes back or doesn't.

Amid news that the company is selling Smith Barney, its prized asset, and selling off the rest of its assets, the stock is down 20% and is below $5 again. is it possible that it has entered the death spiral?

The judge is keeping Madoff out of jail and comfy in his penthouse apartment in New York. This decision came down today even while everyone else, including the government prosecutor, is clamoring for his head and for burying him in jail. It is obvious what is going on.

Bill Gross of Pimco and many other anlaysts are saying that Treasury Inflated Protected Securities (TIPS) are very cheap and offer a good investment as the government's stimulus program begins to reawaken inflation.

Treasury bonds are at all time lows in yield as investors have fled to their safety and security. Many think the market is a bubble. For those that believe it, two ETFs allow you to short the Treasury market.

In a sad bit of news, German billionaire Adolph Merckle killed himself today by stepping in front of a train. The personal toll from the credit crisis continues to pile up.

President-elect Obama is reported to be planning a $310 billion tax cut as part of his $700 billion stimulus program. The tax cuts would provide cash to both individuals as well as businesses.

Madoff may have been the tip of the iceberg, but there are more like him. I've seen them myself. You probably have too.

The only problem is that hope is a lousy strategy for investing, and we are in the middle of a deep and profound recession.