I did not post yesterday, instead, preferring to sit back and watch and listen. Two eyes, two ears and only one mouth suggests to do so if only on a mathematical basis. So many were waxing and waning on the Fannie/Freddie news that I figured the last thing readers would need is another opinion.
Having had the opportunity to "sleep on it" I have come to the following conclusions from Mr. Paulson's move.
1) we have just doubled the federal debt.
2) the problem of housing bear market has not changed one bit
3) the employment picture remains the same.
It is said the market doesn't like uncertainty, so in this regard Paulson has succeeded as the uncertainty regarding Fannie and Freddie has been removed. They have been put out of their misery, at long last! Now all they have to do is draw up the 10 figure severance cheques for Syron and Mudd.
Today the stock market regulators in Pakistan are the inspiration the title of this post as we get news they are extending the trading curbs they intially put in to stem the tide of the bear market. The regulators will try anything to avert a bear market I suppose, that is, the kind they don't like. A bear market in gold, energy, agriculture are to be encouraged. They had already banned short selling over in Pakistan so you think they might just close the exchange. As I have said before, in science at absolute zero temperature, very strange things start to occur. I suggest you read carefully and fully what is going on over their and not only just the stock market.
Remember now that Pakistan is a nuclear power with seemingly no one in charge. I realise many of the equity boyz out there figure that a problem is not a problem till its a problem. Well, this is a problem that I suggest you acquaint yourself with and be prepared.
I will be posting some charts this afternoon.
Good speculating to you all and never ever forget that "an investor is a speculator who made a mistake and will not admit it".
Short 1 unit Int'l Bus Machines ticker IBM @ $129.05 stop at $126.36
Short 3 units FedEx ticker FDX @ $87.10 stop at $88.16
Short 2 units of Apple ticker AAPL @ $178.05 stop at $177.76
Short 1 unit Salesforce.com ticker CRM @ $57.05 stop at $60.62