Merry Christmas from JustSqueakingBy
Happy holidays to all of our readers. I hope you all have a safe and merry Christmas.
Are We Seeing A Dead Cat Bounce or a Bottom?
Dead cat bounce is a term used to describe a market that experiences a dramatic decline in stock prices, then a moderate-to-sharp rise in stock prices before resuming its downward trend.
It is my guess is we’re seeing is a “dead cat bounce.” Speculators and those that think a bailout will be passed have jumped in the market to reap some quick gains. Others may be jumping in trying to cover their short positions. Only time will tell if my guess is right - I have a feeling that it is.
What do you think? Have we hit the bottom, or are we seeing a “dead cat boune.”?
Congress Votes Down Bailout Bill - Interesting Ties…
Not much to say here. The video does a good job of making my point.
A Rollercoaster Ride on Wall Street
Wow! What a way to finish out the week. Wall Street has been up and down and all around over the past week. Stocks opened the day about 400 points higher. This due to the news that the government plans to rescue big banks from billions of dollars of bad debt. The bailout would be the biggest ever undertaken by the government.
In addition, the SEC has placed a temporary ban on the short selling of 799 financial stocks.
What’s up next? Only time will tell. For now, please fasten your seatbelts and keep your hands inside the car at all times. Please enjoy the ride!
Tax Payments for September 15, 2008
I made a quick stop at the post office this morning to send out my 3rd quarter estimated tax payments. This estimated payment is based on the amount of taxes I owed last year for my sole proprietorship. If you, too, need to make these payments, don’t forget to get them in the mail today.
A Changing Landscape on Wall Street
I find it unbelievable that Bank of America is buying Merrill Lynch for a 70% premium ($29/share). If you remember, earlier in the year they also picked up troubled mortgage lender Countrywide for a premium.
It’s amazing they would pass up a deal to buy Lehman Brothers which likely could of been had for a deep discount. Do you think that government played a role behind the scenes? Just how bad are Lehman’s books that nobody wants to but them?
The Question Comes up Again - Should Poor Leadership Be Rewarded
In the Monday edition of the New York Time’s, a consulting firm estimated the ousted CEO of Fannie Mae, Daniel Mudd, stands to collect about $9.3 million in severance pay. Addressing this article, Barack Obama senta letter to Treasury Secretary Henry Paulson and Federal Housing Finance Agency Director James Lockhart stating:
“Under no circumstances should the executives of these institutions earn a windfall at a time when the U.S. Treasury has taken unprecedented steps to rescue these companies with taxpayer resources,”
“It would be a gross violation of the public trust to fail to use this authority now, while American taxpayers and American homeowners, already struggling in a weak economy, are being asked to accept an historic intervention to rescue these institutions,”
While I may not agree with some of Barack Obama’s on a few issues, I completely agree with him on this one. The takeover of Fannie Mae and Freddie Mac was necessary to prevent a larger econmic problem for the United States. In the end, the takeover could end up costing US tax payers billions of dollars. Under no circumstances should we be rewarding CEOs for failure.
What do you think? Should Daniel Mudd receive a large severance package for his work at Fannie Mae?
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About
Just Squeaking By is a blog about my personal finances and my quest to get them in order. Read more about Just Squeaking By
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