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The $700 Billion Bailout Plan Will Remain the Top Story of the Week
Even with a congressional compromise having been reached, the $700 billion credit-crisis bailout plan will remain the headline story this week as analysts monitor whether the deal is viewed as a good one, or is ultimately regarded as a flawed deal that can only do damage to the U.S. economy over the long haul.
Indeed, those analysts will watch to see how the stock-and-bond markets open this morning (Monday) as investors “vote” on whether the deal is a good one or not. A lot will depend upon what the so-called “experts” have to say about the long-term prospects of any deal…
29Sep2008 | Money Morning | Comments Off | ContinuedHigher Gold Price to Spur Industry Consolidation
Reuters 9/24/08
Steve James
Turmoil in the financial markets is driving up the price of gold and likely will spawn a takeover wave among precious metals companies, analysts and industry observers said on Wednesday.
“We believe the stage is set for an unprecedented increase of merger and acquisition activity in the precious metals sector,” analyst Richard Gray, of Toronto-based Blackmont Capital, wrote in a research note.
“A significant amount of upcoming mergers and acquisitions are likely to be done under the assumption that the gold price will increase in the longer term.”
My comment: I forgot to comment on the Kinross takeover of Aurelian as I…
25Sep2008 | The Real Deal | Comments Off | ContinuedJim Rogers and Warren Buffett at Odds on Fannie/Freddie Bailout
Few analysts have abstained from voicing an opinion about the U.S. government’s plan to seize control of Fannie Mae (FNM) and Freddie Mac (FRE), the nation’s embattled mortgage behemoths, and that include such eminent investors as Jim Rogers and Warren Buffett. Of course, two of the world’s greatest financial analysts have very two very different perspectives.
“It is socialism for the rich,” Rogers said yesterday (Monday) during an interview with CNBC Europe, “It’s just bailing out financial institutions.”
The emergency plan announced Sunday by Treasury Secretary Henry Paulson has technically been branded “conservatorship,” a term that implies the government will take its hands…
9Sep2008 | Money Morning | Comments Off | ContinuedCongress Mortgages the Economy’s Future to Save Fannie Mae and Freddie Mac
With President Bush no longer threatening a veto, the subprime mortgage and Fannie Mae (FNM) and Freddie Mac (FRE) “bailout” bill sailed through Congress. In anticipation of its enactment, Congress had the foresight to raise the national debt limit to $10.6 trillion. Who says that politicians don’t plan ahead?
Once signed into law, which should happen sometime this week according to a White House spokesman, the budget busting legislation will hand the Administration a blank check to prop up the ailing home lenders. The ultimate cost is anybody’s guess. I believe that the price tag will be higher than just about anyone…
29Jul2008 | Money Morning | Comments Off | ContinuedInside Wall Street: The Fannie Mae/Freddie Mac Bailout is Necessary – But Don’t Expect a Happy Ending
It’s the end of the “American Dream.” It’s the story of how the inevitable bailout of insolvent housing giants Fannie Mae (FNM) and Freddie Mac (FRE) – with the Federal Housing Administration soon to follow – will ultimately lead to such sorrowful sequels as “TheDeath of the Dollar,” “The Downgrading of U.S. Government Debt” and, yes, “The Depression.”
Let’s be very clear on one point, however: There’s no question about it – Freddie and Fannie have to be supported. If the doctrine of “too big to fail” didn’t already exist, it would have to be invented – immediately. Although many are arguing against…
15Jul2008 | Money Morning | Comments Off | Continued
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