Bear Stearns fell $27 on Friday to close @ $30 and worth $2 tomorrow.

[Poker]

After scanning tonight and thinking over this BSC debacle and how the major averages held their Jan lows despite the very negative news (granted the FED throwing more money at the problem helped keep us up) I am thinking we will probably get a short term rally here. By short term I'm talking a week to a month.

Short term I would say:

• gold has topped
• dollar has bottomed
• stocks get a rally

Some stocks poised to do well short term are:

• RIG
• NFLX
• IBM

If you've been wanting to buy GOOG this is not a bad time, just have a reasonable stop in place.

 

[Gerry]

Here one about how people are buying shares, at over $8 each nuts that is for sure.

That is how money is made. You pay $2, someone gives you $8, you just made 400%...in a day.

If you've been wanting to buy GOOG this is not a bad time, just have a reasonable stop in place.

I am keeping my eye (and wallet) on some other strong buys.

 

[tas38]

Here is a very good read on how this went down, I read it and wondered why the fed did not offer, the $30 billion to Bear Stearns direct. The fed needs to put some kind of system in, that would stop selling at some point so they can recover. I like this part......


( Not that they have much choice. Even if the bank's assets are sound, liquidity rules in a credit crunch, and Bearn Stearns has very little of that. Investors withdrew $17-billion from the broker in two days. JPM's CEO, James Dimon, knows it. In fact, he helped cause it by demanding repayment of a loan from a Bear hedge fund last summer. And now he's moved in for the kill. )

http://www.reportonbusiness.com/servlet/story/RTGAM.20080318.wvox0318/BNStory/SpecialEvents2/home

 

[jasdon11]

Charts don't lie and the charts for that co were obviously in a downtrend as the CEO did his cheerleading all the way down. Ceo's lie, analysts lie, financial gurus on tv lie...anyone with a vested interest in the stock lies to protect their own postion, but Charts tell the story as it is, actually before it is...did I mention charts

I hope the guy who produces the charts tells the truth....:lol:


This whole deal has the stink of corruption at the highest level. The Fed is covering the $30b of debt, but letting another company get the assets at a knock down price - why don't they nationalize it? Is that not an option with US law?

Image how negotiations sounded:

Fed: So, you want us to cover the $30b of debts, and then you will buy the assets at a discounted rate?

JPM: Yes please.

Fed: OK.


Now, if the Feds negotiators were using their own personal money - do you think they would have said the same?

That is how money is made. You pay $2, someone gives you $8, you just made 400%...in a day.

I am keeping my eye (and wallet) on some other strong buys.

That would be 300% - too many late nights at the hospital Doc!

 

[Theo]

Our stock portfolio adviser: hold onto your liquidity for the time being. The market is far too volatile.

 

[tas38]

The fed jump in to save our markets, it was that bad and this is not over by any means. The fed offered upto $200 billion, to stop any other run ons to banks. Our markets are not good, oil prices are going to bring our markets down if not fixed soon.

The fed cutting rates will not help this problem, it will rise oil prices even more then now. By making our dollar worth less yet, I do believe it's clear OPEC is using oil as a weapon on us. Bush begged them to please put out more oil, they did not even think about it before saying no.

This is after bush inked a big weapons deal with them, our best hope is that other country's. Put pressure on OPEC to put out more oil, the bush admins waring and big mouth, and shot gunning made them act this way towards us. The fall out over this close market crash, is not over yet as the markets have been going crazy. This is not going to help people to spend, most people are very wondered because they know this is bad.

Bush slept with the devil and now we are getting burned, they seen this coming with oil long ago. And no one done anything to stop it, or even help put the odds on our side. We could cut all import oil with in 5 to 10 years, if we get behind green coal to fuel tech. We can not fix this with BIO fuels, they are saying it takes more then a gallon of oil, to make 1 gallon of BIO fuel.

http://www.denverpost.com/opinion/ci_8605911

 

[Gerry]

That would be 300% - too many late nights at the hospital Doc!

Hell, that's where I am now. 300, 400...in today's dollars anything on the plus side is a bonus.

 

[draggar]

The fed cutting rates will not help this problem, it will rise oil prices even more then now. By making our dollar worth less yet, I do believe it's clear OPEC is using oil as a weapon on us. Bush begged them to please put out more oil, they did not even think about it before saying no.

Where have I heard this (or very similar) before..

Oh yeah, the Cold War (a.k.a. economic war of capitalist vs. communist), but now we're on the other side.

It seems like the US has made a lot of enemies in OPEC, especially in the last 15 years,
Venezuela - Chavez has become the new Castro
Saudi Arabia - They only act like our friends
Nigeria - Lots of turmoil and becoming less "western" friendly
Iran - 'Nuff said
Iraq - Where is their oil going?

Plus, with countries like Indonesia and Kuwait drifting away from us,we're not going to get much from the UAE and Qatar.

(I think we still have sanctions against Lybia?)

The next administration (doesn't matter who it is) needs to really concentrate on improving diplomatic relationships across the board (and not just cozy up to OPEC). We've isolated most of the Americas (post NAFTA), which IMO is why we're having the issues with Venezuela and other countries now.

Bush has done a good job of isolating the US which is a death trap in a global economy.
(Besides, how can any country truily trust us when our foreign policy changes every 4-8 years?).

 

[jasdon11]

Where have I heard this (or very similar) before..

Oh yeah, the Cold War (a.k.a. economic war of capitalist vs. communist), but now we're on the other side.

It seems like the US has made a lot of enemies in OPEC, especially in the last 15 years,
Venezuela - Chavez has become the new Castro
Saudi Arabia - They only act like our friends
Nigeria - Lots of turmoil and becoming less "western" friendly
Iran - 'Nuff said
Iraq - Where is their oil going?

Plus, with countries like Indonesia and Kuwait drifting away from us,we're not going to get much from the UAE and Qatar.

(I think we still have sanctions against Lybia?)

Hence the need for the vast US Army Base....sorry, slip of the tongue....Embassy, in Baghdad. Gotta keep an eye on that oil folks!

BTW, if the US hadn't invaded Iraq when they did and stopped Saddam from trading his oil in Euros, America would have been bankrupt several years ago.

Terrorism? My arse!

 

[Poker]

Short term I would say:

• gold has topped
• dollar has bottomed
• stocks get a rally

If you've been wanting to buy GOOG this is not a bad time, just have a reasonable stop in place.

Update to my post above on 3-19-08:

Gold did indeed top and the ETF for gold (GLD) fell from a price of 100.44 closing today at 87.42 for a loss of 13%.
This of course would be a gain for you if you sold your gold or went short when I gave the alert.

GOOG did indeed bottom on 03-17 and rallied from $427 on 03-20 to close @ $551 today (traded as high as $602 on 05-02).
From my call to the high is a profit of $175 per share, that's a gain of 3% in less than 1 month.

 

[tas38]

( Bush has done a good job of isolating the US which is a death trap in a global economy.
(Besides, how can any country truily trust us when our foreign policy changes every 4-8 years?). )

That is true we need to get both partys on board, with a plan with world country's and stay with it. And both party's need to stop the political grand standing, when it comes to other country's.

OPEC moved on putting out more oil, because of pressure from other country's. And mostly because, people are cutting oil usage and they now got blaming going on. For high food prices, they also now know they can't stop the green movement. Even if they bring down the markets, the markets will rebuild using all green tech to start them over again.

 

[Poker]

Stock market looking to head lower here ladies and gents...the Bush admin can feel the wheel, they just can't steer...

 

[VirtualT]

With NAB announcing they are writing off 1 billion in AAA CDO's is the final nail in the coffin for the US economy IMO

Don't underestimate this news, for it has massive implications for all the worlds major banks, especially US banks.

 

[kwok]

:undecided: Agree and Lehman Brother will be the next one.

Wow. What a prediction I made back in March. :sigh2: