Forum Replies Created
-
AuthorPosts
-
davelj
ParticipantIf by some miracle we manage to close down 4%-5% today on the major equity indices I will describe it with one word: Progress.
ParticipantIf by some miracle we manage to close down 4%-5% today on the major equity indices I will describe it with one word: Progress.
ParticipantIf by some miracle we manage to close down 4%-5% today on the major equity indices I will describe it with one word: Progress.
Participant[quote=barnaby33]I wish I had access to my outlook email right now, its on my work machine. The email I got yesterday afternoon from our 401k fiduciary would set you straight. You see Davelj, you have a brain, most of the world does not. It has hope and a 401k. Those people literally can’t get out of the market, because the Bill Millers of the world won’t let them. [/quote]
I suppose you’re right. As I occasionally remind folks, “Hope is not an investment strategy.”
And speaking of Bill Miller, I noticed recently that his super-magical mutual fund, which was near the top of all equity mutual funds in performance for the previous 3,5, and 10 years as of year-end 2006… now is near the bottom for all three periods. Oh how the mighty have fallen. Actually there have been rumors that he’ll be canned shortly. God I hope so. One more bull market relic taken out to pasture.
Participant[quote=barnaby33]I wish I had access to my outlook email right now, its on my work machine. The email I got yesterday afternoon from our 401k fiduciary would set you straight. You see Davelj, you have a brain, most of the world does not. It has hope and a 401k. Those people literally can’t get out of the market, because the Bill Millers of the world won’t let them. [/quote]
I suppose you’re right. As I occasionally remind folks, “Hope is not an investment strategy.”
And speaking of Bill Miller, I noticed recently that his super-magical mutual fund, which was near the top of all equity mutual funds in performance for the previous 3,5, and 10 years as of year-end 2006… now is near the bottom for all three periods. Oh how the mighty have fallen. Actually there have been rumors that he’ll be canned shortly. God I hope so. One more bull market relic taken out to pasture.
Participant[quote=barnaby33]I wish I had access to my outlook email right now, its on my work machine. The email I got yesterday afternoon from our 401k fiduciary would set you straight. You see Davelj, you have a brain, most of the world does not. It has hope and a 401k. Those people literally can’t get out of the market, because the Bill Millers of the world won’t let them. [/quote]
I suppose you’re right. As I occasionally remind folks, “Hope is not an investment strategy.”
And speaking of Bill Miller, I noticed recently that his super-magical mutual fund, which was near the top of all equity mutual funds in performance for the previous 3,5, and 10 years as of year-end 2006… now is near the bottom for all three periods. Oh how the mighty have fallen. Actually there have been rumors that he’ll be canned shortly. God I hope so. One more bull market relic taken out to pasture.
Participant[quote=barnaby33]I wish I had access to my outlook email right now, its on my work machine. The email I got yesterday afternoon from our 401k fiduciary would set you straight. You see Davelj, you have a brain, most of the world does not. It has hope and a 401k. Those people literally can’t get out of the market, because the Bill Millers of the world won’t let them. [/quote]
I suppose you’re right. As I occasionally remind folks, “Hope is not an investment strategy.”
And speaking of Bill Miller, I noticed recently that his super-magical mutual fund, which was near the top of all equity mutual funds in performance for the previous 3,5, and 10 years as of year-end 2006… now is near the bottom for all three periods. Oh how the mighty have fallen. Actually there have been rumors that he’ll be canned shortly. God I hope so. One more bull market relic taken out to pasture.
Participant[quote=barnaby33]I wish I had access to my outlook email right now, its on my work machine. The email I got yesterday afternoon from our 401k fiduciary would set you straight. You see Davelj, you have a brain, most of the world does not. It has hope and a 401k. Those people literally can’t get out of the market, because the Bill Millers of the world won’t let them. [/quote]
I suppose you’re right. As I occasionally remind folks, “Hope is not an investment strategy.”
And speaking of Bill Miller, I noticed recently that his super-magical mutual fund, which was near the top of all equity mutual funds in performance for the previous 3,5, and 10 years as of year-end 2006… now is near the bottom for all three periods. Oh how the mighty have fallen. Actually there have been rumors that he’ll be canned shortly. God I hope so. One more bull market relic taken out to pasture.
Participant[quote=kev374]Apparently Goldman and JP Morgan have taken care of the capital requirements so this is all frivolous reporting. AIG is fine. They have $500 billion in assets.[/quote]
The absolute level of a firm’s assets is meaningless. It’s the level of assets RELATIVE to its liabilities. My guess is that the reason the private sector has bailed on AIG is because it suspects that AIG’s liabilities are greater than its assets (on a liquidation basis). I suspect the market is right. Without the Fed, AIG is toast at this point.
Participant[quote=kev374]Apparently Goldman and JP Morgan have taken care of the capital requirements so this is all frivolous reporting. AIG is fine. They have $500 billion in assets.[/quote]
The absolute level of a firm’s assets is meaningless. It’s the level of assets RELATIVE to its liabilities. My guess is that the reason the private sector has bailed on AIG is because it suspects that AIG’s liabilities are greater than its assets (on a liquidation basis). I suspect the market is right. Without the Fed, AIG is toast at this point.
Participant[quote=kev374]Apparently Goldman and JP Morgan have taken care of the capital requirements so this is all frivolous reporting. AIG is fine. They have $500 billion in assets.[/quote]
The absolute level of a firm’s assets is meaningless. It’s the level of assets RELATIVE to its liabilities. My guess is that the reason the private sector has bailed on AIG is because it suspects that AIG’s liabilities are greater than its assets (on a liquidation basis). I suspect the market is right. Without the Fed, AIG is toast at this point.
Participant[quote=kev374]Apparently Goldman and JP Morgan have taken care of the capital requirements so this is all frivolous reporting. AIG is fine. They have $500 billion in assets.[/quote]
The absolute level of a firm’s assets is meaningless. It’s the level of assets RELATIVE to its liabilities. My guess is that the reason the private sector has bailed on AIG is because it suspects that AIG’s liabilities are greater than its assets (on a liquidation basis). I suspect the market is right. Without the Fed, AIG is toast at this point.
Participant[quote=kev374]Apparently Goldman and JP Morgan have taken care of the capital requirements so this is all frivolous reporting. AIG is fine. They have $500 billion in assets.[/quote]
The absolute level of a firm’s assets is meaningless. It’s the level of assets RELATIVE to its liabilities. My guess is that the reason the private sector has bailed on AIG is because it suspects that AIG’s liabilities are greater than its assets (on a liquidation basis). I suspect the market is right. Without the Fed, AIG is toast at this point.
Participant[quote=jficquette][quote=davelj]As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.
The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.[/quote]
I agree however they did do the Bear Sterns deal over a 3 day weekend.
John[/quote]
True, but Jamie Dimon has admitted publicly since the Bear Stearns deal that he wouldn’t have done the deal if offered another chance to turn it down. I think proper due diligence would have revealed the folly of the transaction. Now folks know how ugly the innards of these companies are. Now they either want time to perform proper due diligence or a government backstop – which are completely rational desires. On a related topic, I believe that Ken Lewis (sorry, make that Ken Lewis’s shareholders) will rue the day he agreed to acquire Merrill on such short notice.
-
AuthorPosts
