Just a couple of comments. The short-term rally we were looking for got derailed temporarily this week by concerns about GM and the other Auto Makers.
It looks like President Bush is going to provide the bailout in the short-term out of the Tarp.
The Auto Bailout failed in the Senate last night by a vote of 52 in favor and 35 against. This was a strange result. A majority of the Senate was in favor of the bailout. They had the votes to pass the bill. BUT, they didn't have the votes to stop the Filibuster by the minority.
That minority was led by Richard Shelby of Alabama. Congress, the President, the President-elect, and a majority of the Senate were in favor of the bill, but one lone Senator was able to stop the whole thing with the help of 34 colleagues.
In some ways that is just crazy.
But even crazier was the news the that Bernard Madoff was arrested for perpetrating the largest theft in history. It turns out his $50 billion hedge fund was a giant Ponzi scheme. Madoff used to be chairman of the NASDAQ. He virtually invented it. He ran a number of large investment houses on Wall Street since 1960.
Adding a surreal quality to the story, Karen Finerman on CNBC's Fast Money said; "why admit it was a Ponzi scheme now. this market gave him the perfect cover. Just say you made some bad trades and lost all the money."
It is no wonder people are losing faith in the system, both Wall Street and the Government.
Here's some added irony from Madoff's website:
"In an era of faceless organizations owned by other equally faceless organizations, Bernard L. Madoff Investment Securities LLC harks back to an earlier era in the financial world: The owner's name is on the door. Clients know that Bernard Madoff has a personal interest in maintaining the unblemished record of value, fair-dealing, and high ethical standards that has always been the firm's hallmark."
I think we will see increased regulation of Hedge funds going forward. That's a good thing.
I think we will see increased regulation of derivative products going forward. Not just the debt swaps that got us into this mess, but the double and triple down ETFs that exaggerated the decline. Also a good thing.
I think we are back on track for a near-term rally. I remain optimistic in the short run.
It looks like President Bush is going to provide the bailout in the short-term out of the Tarp.
The Auto Bailout failed in the Senate last night by a vote of 52 in favor and 35 against. This was a strange result. A majority of the Senate was in favor of the bailout. They had the votes to pass the bill. BUT, they didn't have the votes to stop the Filibuster by the minority.
That minority was led by Richard Shelby of Alabama. Congress, the President, the President-elect, and a majority of the Senate were in favor of the bill, but one lone Senator was able to stop the whole thing with the help of 34 colleagues.
In some ways that is just crazy.
But even crazier was the news the that Bernard Madoff was arrested for perpetrating the largest theft in history. It turns out his $50 billion hedge fund was a giant Ponzi scheme. Madoff used to be chairman of the NASDAQ. He virtually invented it. He ran a number of large investment houses on Wall Street since 1960.
Adding a surreal quality to the story, Karen Finerman on CNBC's Fast Money said; "why admit it was a Ponzi scheme now. this market gave him the perfect cover. Just say you made some bad trades and lost all the money."
It is no wonder people are losing faith in the system, both Wall Street and the Government.
Here's some added irony from Madoff's website:
"In an era of faceless organizations owned by other equally faceless organizations, Bernard L. Madoff Investment Securities LLC harks back to an earlier era in the financial world: The owner's name is on the door. Clients know that Bernard Madoff has a personal interest in maintaining the unblemished record of value, fair-dealing, and high ethical standards that has always been the firm's hallmark."
I think we will see increased regulation of Hedge funds going forward. That's a good thing.
I think we will see increased regulation of derivative products going forward. Not just the debt swaps that got us into this mess, but the double and triple down ETFs that exaggerated the decline. Also a good thing.
I think we are back on track for a near-term rally. I remain optimistic in the short run.
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