Don't Worry Be Happy

Pay no heed to that man behind the curtain, I am the great Oz...

Everythings gonna be alright, the Fed cuts gonna do us right, don't worry, be happy...

if everything is going so good, then why did this happen today?

Lehman Brothers #4 & Goldman Sachs #1 investment bank...

S&P revised its outlook to "negative" from "stable" on Goldman's "AA-minus" and Lehman's "A-plus" long-term credit ratings.

FGIC, owned by Blackstone Group LP and 42% by PMI Group Inc....

Financial Guaranty Insurance Co.'s A rating and holding company FGIC's BBB ranking were put on CreditWatch with "negative implications," by S&P meaning further downgrades.

S&P stripped Financial Guaranty Insurance of its AAA rating on Jan. 31, lowering it two levels to AA. The company was cut three more steps to A on Feb. 25.

S&P said Wall Street banks' profits may fall as much as 30% in the coming year.

"Our current expectation is that net revenue could decline" at least 20% for independent securities firms.

Makes you just wanna load up on bank stocks, doesn't it? Just like the suckers these last two days, buying on "the dip".

Or should I say the dips buying on this dip, as in one of many to come...

Comments

Ram said…
Now that the T-bill yield has plummeted to a tad above zero, what else could Bernanke do to close the TED spread?
Mr. Naybob said…
How about NOTHING.

He should have left rates at 5.25% and kept raising, that would have thinned the herd and cured the problems quicker.

In the end, this is going to be the largest financial disaster in history.
Ram said…
May as well blame Greenspan for inflating bubble after bubble with lower and lower rates throughout his tenure. They are both guilty.
Mr. Naybob said…
More so Greenspun

He traded the dot com bubble for the real estate asset bubble.

By lowering to 1% and keeping it there too long this truly is...

The Mess That Greenspan Made.

Poor Bernanke knew the mess he was inheriting, and has bungled it.

Along with the IRS, the Fed is another autonymous agency that needs to be abolished.

Control over the currency should be vested in the people.