Posted on 03/06/2009 3:38:55 AM PST by TigerLikesRooster
Preview from Europe: Stocks Go Cliff Diving Again
by: The Mole March 06, 2009
It's amazing what you can buy for a buck or two these days. The un-happy meal menu of stocks features Citibank (C) at $1.02 and General Motors (GM) at $1.86 as the death spiral beckons. There are times when too much drink is simply not enough as the horror show continues unabated. Yesterday’s laughable notion that the Chinese authorities are in control of events and would be able to turn their export driven economy around displayed the kind of naivte and misplaced optimism not seen since the Alamo. Where are they going to export to?
Stock Market BearAny respite today? Unlikely, with non farm payrolls to be released, Citibank all but nationalised by default, genuine fears of GM bankruptcy, General Electric (GE) needing a massive capital injection, volatility spiking back above 50 and the US government increasingly seen as overextended.
Today’s Market Moving Stories
* Another very bad day for financials yesterday, post Aviva’s (AIVAF.PK) dreadful results. Aviva’s share price ended up falling a third and took UK life insurers Prudential (PRU) and Legal & General (LGGNY.PK) with it. The two latter insurers have yet to report full year results although both have made somewhat comforting statements about their year end capital positions. Trouble is that plunging equities, falling property values and wider credit spreads can only spell out a much weaker Q1.
* Barclays’(BCS) share price was on the skids yesterday, down 24%, after a particularly negative equity report predicting two years' of losses. Its market cap is now down to £5.5bn so if the government does need to come to the rescue, there won’t be a lot left on the table for shareholders due to the dilution.
(Excerpt) Read more at seekingalpha.com ...
Ping!
How come your last two posted articles haven’t shown up on the FR ‘front page’??
I find this to be faintly disturbing..... ;~)
Citibank (C) at $1.02
Heh. I sold that at $50+
I refuse to buy anything at all and have not - with small exceptions - since basically July, when I saw the clear signs of Hussein winning it all.
Sorry Charlie, not buying.
Have a question for you, and I'm serious. Why is ANYONE buying right now? Anyone who follows my posts knows I am know-nothing when it comes to the economy. Thank goodness there are those around here who will take the time to help educate me!
I can see buying low, but when low has a new definition every day, or at least four days out of five, why would anyone buy anything? Why not just wait a day or two and get even more bang for you buck, literally?
Thanks!
Not to worry. The Democrats will spend us into prosperity by giving money to their various constituencies.
It’s time to start dismantling the entire corrupt Democrat establishment, piece by piece.
Thanks for the ping.
People buying now believe that they have identified a bottom, or near bottom.
If one believes that this is a typical market correction, ala 1997, (U shaped curve) then buying now is the smart play.
If one believes that this could be an L shaped curve, then the fundamentals have been skewed by government intervention and we are in for a long period of “stagflation” ala Jimmy Carter, but with massive new debt and no way out except to pay. - Or default. - all very bad.
In this case, the winning play would be to buy precious metals and futures in such things.
Simply saving money would be useless as inflation, deflation, and taxes would destroy it's buying power.
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