Stock Market Analysis – 09-16-2008
Talk about a reversal. After opening down quite a bit, the fed decided to leave the rate unchanged when it was widely expected that they would cut rates in the wake of the latest banking collapse. I am in wholehearted agreement with this move since inflation seems like the one threat we can actually deal with right now, whereas all the banks that are on the brink of insolvency will trip over the line regardless. AIG appears to have a bailout plan in place now which seems similar to the FNM and FRE plans. LEH must be steaming over the fact that the fed bailed out almost everyone except them. Look for more details on the AIG situation tomorrow.
Stock Market Analysis – 09-12-2008
A lot has happened over the weekend again. This time it’s the collapse of Lehman Brothers (LEH) and Merrill Lynch (MER). LEH is gone, but MER will likely be bought by BAC. This should be another exciting week (more so for the bears of course).