I thought about posting this yesterday. Jeremy Siegel's Yahoo Finance column, "Why Bernanke's Critics Have it All Wrong," posted August 29, 2007, lays out the financial meltdown that started in August. Then, Bernanke surprised the market with a 50 bps federal funds rate cut.
No one likes to call a bottom for fear of being wrong, but the .75% rate cut just announced by the Fed may be enough to float the markets up for another 6 months. I like what Boris Boehm of Germany's Nordinvest said, as quoted in the Times, "There’s an old saying in the market that banks lead us into recession and banks lead us out."
Tuesday, January 22, 2008
Thursday, January 17, 2008
Love 'em when they're up, love 'em when they're down
Citigroup lost $9.83 billion in the fourth quarter.
Merrill lost $9.8 billion in the fourth quarter.
No wait, make that $16 billion.
Yet Merrill paid $15.9 billion in compensation and benefits to 64,200 employees.
Seems like they should have nixed the bonuses and they would have come out even. Glad I'm not a stockholder. Looks like the only industry not accountable to stockholders are the brokerage firms.
Merrill lost $9.8 billion in the fourth quarter.
No wait, make that $16 billion.
Yet Merrill paid $15.9 billion in compensation and benefits to 64,200 employees.
Seems like they should have nixed the bonuses and they would have come out even. Glad I'm not a stockholder. Looks like the only industry not accountable to stockholders are the brokerage firms.
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