Comments on: Here’s Why the Stock Market Relief of Late Last Week May Not Last

By: chris erickson

chris erickson — Mon, 27 Oct 2008 03:00:40 +0000

Well the goverment has bailed out the banks & wall street & their stocks still fall & they wont lend money out & as I said before they have raised intrest rates ..So now what . we are lossing jobs , laying people off & the politicians are still deff dumb & blind , so are the banker / lenders… They fore close intead of lowering the intrest rate .. They people who made a fortune are being saved after they stole all the money … The Fed has lowered intrest rates to 1.5% ; yet the banks still want to charge 6 to 7 % interest…So what is the gov going to do for main street besidesraise taxes ..I said before that to fix this mess the banks , lenders ; holders of these loans/enities need to adjust the intrest rates & that the goverment now that it has taken Fanni & Freddi back can do this ; the banks that dont want to help let thim fail…The intrest rate should be dropped on all existing loans to 4.5% fix for 30 years …Instead they are letting a bank rate set in europe control the rates in this country it is call the LIBOR..This is b/s & stupid so the banks will have more forecloseures & failures then they willwant more help … as I said in previous posts use the KISS rulwe keep it simple stupid.But nobody gets ir espicialy congress aa7 the banks / holders of the so called toxic debt…..

By: Michael R. Scott

Michael R. Scott — Sun, 26 Oct 2008 20:31:23 +0000

Dear Sir:
Do you remember the story of the “Kings Clothing”? I hope so, because it applies to your commentary. What the Treasury Secretary is doing with billions of dollars isn’t going to solve our current problems. What he is doing is only a bandage that he hopes will keep the markets afloat until after Bush/Cheney leave office. If he really wanted to solve the problem, he would make it an advanced requirement that, before getting one dime of bailout, they announce to the public, what percentage of their assets are made up on bundled auction rated securities. Then, and only then, the government would buy those virtually worthless securities, at ten cents on the dollar, which is actually the worth of most of those those toxic instruments. Now, that may be painful for the morons which purchased them with out doing their research, but it is the only reasonably, business sound, fair way to dispose of them. Anything else is just fabrication which will put off the coming Depression because of deregulation. Either way it is going to come. If it is put off, it will only be more destructive and painful. Regardless, the American public will remember under which watch this happened!
Michael R. Scott

By: Andrew Smoak

Andrew Smoak — Sun, 26 Oct 2008 18:03:22 +0000

This article does not explain or follow it’s title. Too much about the quarterly outlook. If we followed quarterly figures, it would be like a dog following it’s own tail. Forward looking numbers & investment strategies will dictate what will happen to the market. Cloud Computing will help all IT spending for the next five years, as oil settles & the banks begin to resume lending. Hopefully, the government will help absorb the excessive housing, like Mc Cain is in favor of doing. Otherwise, I think an RTC structure needs to be put back into place. This would back-stop the properties in foreclosure & let the market sort things out, as investors naturally will follow.
Last, I think the yield for 10 year Treasury bills is properly valued today & I hope to see it move up as the economy recovers.