Hi James,
This is slightly off-topic but only slightly.
First, do you think the speech by Greenspan was influenced by the near default of Long-Term Capital? On the face of it LTC's troubles hint at a possibly much larger problem with foreign and domestic markets. Could this have been the final shove to induce a rate cut?
Second, could you briefly explain how the bail-out occurred? I've heard people say that it was a "Fed bailout" but it appears that the only people infusing money are the very banks who invested in the fund. So they were protecting their own money and in return received substantial control over its future use. I'm not sure where tax-payer money was used.
I realize you work at a completely different type of investment firm but I value your opinion and felt it might be germaine to the overall market condition. Afterall, I moved into a high cash position right alongside you back when things were still moving up and couldn't be more pleased.
And for Paul's question about whether people are buying anything the answer is "kinda" <g>. I placed a bunch of GTC orders for a few companies (DSWLF, NH, CSE, CRUS, OMPT, X,...) but the only one that got filled was USU for $14. Not all of them are value stocks, of course, but what the hell <g>!
Thanks,
John |
