This post is different than most you have read on my blog as it is really like a Seinfeld episode, a post about nothing, but there sure is a lot to say! There are so many newsworthy issues occurring on a daily basis that it is truly hard to pick up on all of them, so I will just give a top down view of the major issues in the world right now:
- Madoff pleads guilty but refuses to give into the conspiracy allegations and said that he acted alone in this epic fraud. Does anyone with half a brain cell believe that? The answer is no, you cannot have a fraud as monumental as this without having co-conspiritors. The task is far to grand for one sole person to be the only one that “knew.” Bernie, at age 70, will end his days in prison, which is little consolation for his victims.
- Bear Rally or a bottoming? I have already posted on this exact subject so I will not belabor this point and tell you it’s a BEAR RALLY. Nothing has fundamentally changed in the market, so this is a short term bargain hunters rally.
- Very funny CNBC rouse by John Stewart on The Daily Show. It was funny and sad at the same time, mostly because Stewart was spot on. It is kind of like a theatre of pain.
- You know the US economy and markets are in really bad shape when the Premier of China, Wen Jiabao, came out in the news and said he is concerned about the safety of US Treasuries, because of the US debt that they are holding. After reading that I am refusing anymore sweet and sour pork. Well, for a little while anyway.
- In a true twist of fate, at the same time the Chinese Premier expresses concern about the safety of US Treasuries, JP Morgan comes out and says that Chinese banks and insurance companies should be purchased, as their economy still shows high growth potential. All I can say is WOW!!
- It is funny seeing all of the bad press out there on the US economy, the massive real estate slump, etc. It reminds me of a great quote by Mark Twain, “the rumors of my death have been greatly exaggerated.” Never, ever count the US economy and industry out.
- A recent story that has some serious repercussions is the end of Swiss banking secrecy. UBS has cooperated with the government on allowing them to penetrate the numbered accounts to see who is the beneficial owner of the “secret” money. As I said in an earlier post, I recommend that the Presidential administration allow a one-time tax amnesty which would probably flood the domestic banks with massive amounts of cash. The liberals will have none of that though.
- Bill Gates is again the richest man according to all the sources available, including Forbes. Although his net worth has also suffered a drop of $18 billion. He is now only worth $40 billion. What to do, what to do…
- Look for M&A transactions to increase substantially this year as there is nothing on the horizon relating to an exit for private equity or VC firms. Good news for firms that specialize in that arena.
- A bright spot in this economic debacle is that the US trade deficit is at a 6 year low with demand for foreign goods dropping precipitously.
That is the news from the top. In a recap fashion, I will try and get one of these posts out every week.
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment