Michael,
I agree, let's get back to business. As for the turbulent times we live in, I will make just this one comment: anyone who is shocked at the cockroaches scurrying about in the glare of the flash light is simply naive. Nothing changes under the sun, the good book says.
Booms end with busts, bubbles end badly and huge bubbles end very badly, with bankruptcies, fraud, big losses, suicide and jail time. It's not just the speculative issues, telecoms and energy traders that are involved, but Ma and Pa as well. GE, the widows and orphans' stock, MADE ITS NUMBERS EVERY QUARTER, that was its mark in trade for decades. Now, how could a conglomerate make its numbers every quarter, almost always by a penny or two, with the economy and various business segments going in different directions? Diversification? Ha! It was a slush fund, known as GE Capital; too much earnings this quarter, take a little away for a rainy day, a little shortfall here, ah, there you go. Just look at all the Dow stocks which made their numbers, year after year after year.
Nobody minds as long as the stock market goes up. When the market falls the cry goes out: they've been cooking the books. I'm shocked, Rick, simply shocked to find out that gambling has been going in this casino.
Executives taking gobs of "incentive" stock options, cashing them out regularly diluting the real owners via the market? It's all good as long as the market rises. Just look at the insider sales on the Homeboys. Everybody's a financial genius in a rising market, every executive is entitled when his stock rises, right? This bull market lasted for 20 years, the bubble at the end for about 6. Anyone surprised about it or thinks Dick Cheney came up with it in the last 12 months should simply go back and read Barrons, the WSJ or Byron Wien. There are none so blind as those who will not see.
Anyway, let's get back to work, shall we? The VIX is still holding above 30, but Dabum thinks a sideways week is mildly bullish. I wonder why?
Kb |
