Comments (3)

• The Fed and Treasury are trying to solve a crisis of widespread insolvency by adding liquidity to the market. Banks know the gig is up. They don’t want to lend in a recessionary environment. You can flood them with money, but that will not make them lend. While the market will likely rise in the short term, I’d expect more downward movement over the next year or so. None of what the Fed and Treasury is doing right now is fixing the underlying problem.

  Comment by Lionel — Wednesday October 8, 2008 @ 11:16am PST  Reply to this post

• Why is it perplexing that stocks aren’t going up more? The answer is simple. Bailout or not, we’re going into a serious recession and everybody, entertainment companies included, will be affected

  Comment by richard — Wednesday October 8, 2008 @ 11:59am PST  Reply to this post

• Dead cat bounce.

  The worst is yet to come… We still don’t have massive writedowns of these bad mortgage-backed securities and credit default swaps, and since all this hazy, mysterious toxic sludge is on everyone’s books nobody trusts anyone else to loan them enough for a friggin latte, let alone millions or billions..

  Maybe there’ll be some bids when the short ban goes away, folks wanting to cover and lock in some sweet gains, but who else in their right mind would buy a financial stock with this much unresolved s–t left?

  Comment by Dr. Kenneth Noisewater — Wednesday October 8, 2008 @ 1:06pm PST  Reply to this post