Articles

Somehow Angelo Mozilo's comments to Maria Bartiromo this morning don't pass my smell test.

The stock market frenzy of recent has been a thing to behold. Something fundamental has happened – actually crept up on us – that has turned the traditional herd behavior so characteristic of past market events into a new stampede phenomenon. Anyone who has tried to herd cattle knows that it is not as easy as it looks and that, importantly, it takes time to get them all moving in the same direction. Stampedes are something else. The volatility we have all experienced, big time, these last weeks (both up and down) has been an ever more important indicator that something has taken hold of the market to which we have given insufficient attention and that will continue to have a fundamental impact not only on markets, but on individual economies and the world economy too.

The yield on treasury bills plummeted today as investors sought them as a safe haven. Clearly, the impact of the credit crisis is not over.

AOL had no choice but to try to remake itself completely when changing internet access patterns forced it to give up its once lucrative subscriber revenue model. The company was a great early entry into the use and possibilities of the internet. It was filled with people (I knew them all in the early days) who were filled with the excitement of breaking ground and leading a seismic shift in communications and information. But things have changed rapidly, and AOL is yesterday.

Effective immediately Capital One is sutting down its mortgage unit GreenPoint Mortgage. The companys stock is taking a beating. The damage continues.

A new term (to me) describing many of the sub-prime loans given over the last five years.

The market girations of recent are hard on even the most seasoned investor. Sleepless nights are common during these periods. I have shorted many times before, but only when I believed a particular equity for a particular reason was going to go south. This time, I tried a different kind of short program, and I am sleeplng (and doing other things) again.

I find agency bonds particularly attractive here.

Momma Bernake is giving the bottle to Wall Street Bankers and Traders to keep their businesses afloat. Do you think they'd throw any of us a lifeline? Doubtful.

The markets my be volatile but the Internet is alive and well!

The Fed cut discount rate today by 50 basis points (1/2 percent) to 5.75% signaling its concern over the credit crunch and attempting to reassure markets. This and rate increases on bank deposit products show the need that banks have to gain deposit dollars and maintain liquidity.

On Friday, August 17, Countrywide increased its offering on 3-month, 6-month and 1-year CDs above those offered by its competitors. E-Loan now has the most compelling 2-year and 3-year CD rates. These increases have occurred in spite of a sharp decline in Treasuries the previous day.

So lets say you are insanely well connected, insanely rich or insanely lucky. You may be able to invest some of your money with a big hedge fund like ESL- Eddie Lampert's highly regarded fund.

It's becoming harder and harder to get a jumbo mortgage. Here's why.