Jim, I think more important is to look forward 1 or 2 employment reports, when the full effect of the Ward's and LTV steel bk's start impacting, not to mention all of the dot coms and others (retailers) that are set to take the pipe in the new year. LTV did get a last minute loan from Chase, but they should just let it go, Imo. And this shows just how stupid loans get done in the first place.
The offset is maybe a cooling of wage pressure?
CSCO has some serious write-offs themselves, due to their vendor-lender policy. GE capital is the one that pulled the plug on Ward's, I wonder just what they have reserved for that? And I think I read somewhere that GE gets something north of 75% of it's profits from the GE capital lending unit. So, that puts pressure on all the rest to pick up the slack, if they can. I also just read recently that many of the big banks are writing off $billions due to losses in the auto leasing sector.
The weakening dollar really bothers me, even though we knew it was coming from our talks months ago.
We have to put on our thinking caps. I agree, quick profit taking will be key, at least to start off the new year.
I have my favorite micro-cap rats, including some bio and health sectors picks as the way to go for the new year.
BTW, the Greek Drachma, in good use for over 2500 years, is being replaced by the Euro...that has to be a signal for something....... |
