Current Foreclosures

Did you notice that oxymoron? Actually, it's a rather cute name for a website. This Current Foreclosure site has thousands of foreclosures listed. Might you not need an agent after you look at the list? Yup. It's always good to have an agent, whether you're a seasoned investor or a newbie. I'm not an agent but I'm sure you can find one nearby.

Accountability? hahaha

From an investor newsletter - don't ask me which one - there are so many: "After receiving hundreds of billions of dollars in taxpayer-funded federal bailout money, the biggest U.S. banks say they can’t track how that money is being spent. Some of the banks are outright refusing to discuss the matter, a new study has found." Isn't this attitude just like the one that got us in this fine mess to begin with? Where's the government when you need it? Where is that famous bully pulpit I keep hearing about? Who is accountable? Hello? PLEASE. That photo shows a pressed wood violin. That's what the financial system is now made of - PRESSED WOOD. It used to be OAK.

Bottom

This quote is from some publication - don't ask me which one - maybe Yahoo. "I don't think anyone can say we've reached the bottom yet," said Chuck Gabriel, managing director of Capital Alpha Partners in Washington. "It's going to be a very gloomy Christmas." Kim Caughey, equity research analyst at Fort Pitt Capital Group in Pittsburgh, said that "for investors to get more confidence, we need to know details" of the new administration's plans to handle the crisis. "There's been a vacuum of leadership" she added, "and when that happens, you get fear and rumors, and then people sell." It came from about two weeks ago. These people know nothing. They panic just like everyone else. Even their guesses are half-hearted. They are too scared to stick their necks out and say something concrete. I think what I said was that the market had already hit bottom - it's time to start buying. You can have a different opinion, of course, but at least state it - don't be a marshmallow when you talk - please.

FEAR

So, the stock market is still falling despite the bailout legislation? The country (and the world) is saturated with economists - some great and famous - yet, only a very, very few predicted the credit disaster. Those who did were not paid attention to. Credit is driven by confidence and trust. Everyone knows that. When confidence wanes, leaving a vacuum, fear starts to take its place. People see doom and gloom behind every tree and around every corner. Politicians are scrambling to settle things down. Even the State of California is asking for a bailout. It seems nothing was learned from Great Depression days. I believe things will actually get better, but what will now happen is that people of all stripes will look to government for solutions. That means government control and power will grow tremendously. Here, it will be liberal power - sharply toward the left. The virus is in Europe also. There, the power will shift toward the right. That's my best guess. What do I know? Get a second opinion.

Guillotine time

As the market gets shakier and shakier, people wonder more and more what went wrong. All these smart people in charge of the entire economy - less than two dozen people was all it took to bring things to a fine mess - the credit market at a standstill. We now know that even the biggest businesses and the biggest banks were living from paycheck to paycheck. The aura and charisma of success was all just a veneer. I think the biggest and wealthiest American investors will soon start putting their money into Europe, China, and even Russia. How cool is that? As Sir Winston said, "Never have so few owed so much to so many." The Timid Reporter will post his interview of Jimmy Cayne here soon.

Hemlines and the Economy

They say hemlines are a barometer of the state of the economy - the better the economy, the higher the hemline. Evidently, that is no longer true, or someone forgot to tell this lady. The economy does not seem to be doing well, yet, hemlines are at an all-time high. Perhaps the opposite is now true? Who really knows? Common sense tells me that nobody really knows how the economy works. Predictions are useless - even when they come - I should say especially when they come - from the most knowledgeable economists. The other day, I was guessing that the Chinese and other countries had pressured the U.S. government to take over Fannie Mae and Freddie Mac and I was right. They were behind it. They sort of pulled the plug. I even heard someone say that if these two giant lenders had collapsed, the entire world economy would have come to a standstill. Maybe we're hanging by a thread (on a short hem) and don't know it?

Finance for adults

Fannie Mae and Freddie Mac - remember those names. Their collective name is now mud since a rumor began to spread earlier today about Federal regulators taking them over. That move will cost common shareholders and you and me dearly. Maybe not me. Maybe my kids. If the rumors are true, the Federal budget will have to support billions of dollars in bad loans which have up to now been backed by the two giant semi-public entities. This is what happens when one is careless with someone else's money. What are the choices? There aren't any. A collapse of either or both of these giant underwriters would cause panic and start an unstoppable cascade of shareholders bailing out - like a run on a bank. Credit would get super tight. If money is not kept moving, the entire economy will grind to a halt. Perhaps we're hanging by a thread but don't yet know it. I wonder if the Chinese were wanting to cash in their chips? Or the rich Arabian sheiks? The Federal action, otherwise, appears premature. Good luck to us all.