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Wall Street, J. P. Morgan, Warren Buffett, and Elton John
This past week’s approximately $2 trillion pledge of support for their financial markets by the Europeans has stabilized the global financial markets somewhat. Commercial paper and LIBOR rates have fallen a bit. All is not well however. US mortgage rates rose by a half per cent. This may further weaken the housing market and send another tsunami wave through bank balance sheets.
By the way, if the Europeans are going to spend $2 trillion to “fix” their financial problems, how in the world will a measly $700 billion fix the financial problems in the US? After all, the US is…
20Oct2008 | Oxbury Research | Comments Off | ContinuedLifeline of the U.S. Economy
The rapid pace in which our financial markets are restructuring have many investors scared and intimidated. I am asked by friends, family, and other associates about what to make of the shakeout in commodities, equities, and credit markets.
This often puts me in an awkward scenario. You see, today’s market volatility presents and destroys financial opportunity on what seems to be a daily basis. I have a hard time recommending to somebody a play that they can simply hold over the next 5 much less 20 years. For that reason, if I don’t see or talk to somebody rather frequently, I…
7Oct2008 | Oxbury Research | Comments Off | ContinuedStaring into the Abyss
The Philosopher Nietzsche wrote, “When you stare into the abyss, the abyss stares back into you.”
And as the new week’s trading approaches, we also peer down from that yawning precipice to a barely visible bottom and ask: could it be the end?
Nietzsche’s intention in the above quote was to warn us against the allure of gazing trance-like into the seemingly bottomless, vertigo-inducing wastes of doom, lest they become mirrors into our own meaningless lives. For it is the abyss within ourselves that so terrifies.
Without the anchor of faith, Nietzsche wrote – without belief that life has a purpose and a…
6Oct2008 | Oxbury Research | Comments Off | ContinuedNewly-Nationalized Wall Street
Why the US Dollar Should Look Out Below
Well, who would ever have guessed even a month ago that the country once considered the great global bastion of capitalism would embrace socialism with open arms … and without a shot being fired or a riot in the streets?
The Bush administration is well on its way to acquiring unchecked power from Congress to buy $700 billion in bad mortgage investments from financial companies. This plan aims to dodge a credit freeze that could immobilize the financial system and the world’s largest economy (which sounds like a great idea, doesn’t it?) but all…
24Sep2008 | Oxbury Research | Comments Off | ContinuedA Black Hole Nearly Swallows Wall Street
Last week, scientists switched on the Large Hadron Collider in Switzerland. The Large Hadron Collider is the world’s largest and highest-energy particle accelerator. Scientists are hoping it will help unlock some of the mysteries of the universe. Non-scientists were fearful that it may create a black hole which could possibly swallow the Earth.
It looks like the non-scientists were right on the mark. A black hole appeared right in the middle of Wall Street and swallowed Lehman Brothers. The black hole also forced the Merrill Lynch Blundering Herd into the arms of Bank of America and giant insurer AIG into the…
22Sep2008 | Oxbury Research | Comments Off | ContinuedThe Little Market That Couldn’t
And people who think they’re laying rail.
Sigh. I tried. Really, I did.
But there was just too much idiocracy to allow the publishing of the first two articles I wrote this week. Originally, they were optimistic, forgiving, and light-hearted. Then I turned on the television.
And started laughing. A frustration-driven, maniacal laughter that rivals that of the Joker from Batman. And not Heath Ledger’s Joker, I’m talking the original – Jack Nicholson style.
Why?
Because I love watching fat cats sweating through their $3,000 suits, all but hyperventilating under the bright lights and cameras surrounding them, as even they struggle to believe the…
19Sep2008 | Oxbury Research | Comments Off | ContinuedCorporate Governance Runs Up The White Flag
Your Federal Government Is Now An Insurance Shareholder?
Well, American International Group (NYSE – AIG) certainly went south faster than we expected. Rather than rising to fill the gap before plunging, it instead plunged straight away. Will there be a bounce? Well, let’s look at recent surprise developments before making a prediction.
The U.S. Federal Reserve Board has just agreed to lend up to $85 billion to AIG to allegedly prevent a “disorderly failure” that could wreak economic havoc. The loan is secured by all AIG and primary non-regulated subsidiary assets so that the insurance giant can meet its obligations as they…
18Sep2008 | Oxbury Research | 2 comments | ContinuedHow Lehman Brothers’ Own Risk Management Strategy May Cause it to Fail
When Lehman Brothers Holdings Inc. (LEH) announced a third-quarter loss of $3.9 billion earlier this week, the investment bank’s shares plunged as Wall Street questioned its long-term ability to survive.
Of the five big investment banks that were in operation at the outset of this year, The Bear Stearns Cos. has already failed and been taken over and Lehman Brothers is trying to avoid a similar fate. That leaves only three members of the original group – Goldman Sachs Group Inc. (GS), Merrill Lynch & Co. Inc. (MER) and Morgan Stanley (MS) – a casualty rate as steep as the one…
12Sep2008 | Money Morning | Comments Off | ContinuedHealth Care for Your Wallet
There are few sectors in the market you can count on during recessions. One of them happens to be health care. The difference with health care is that it’s less economy-sensitive; people generally cut back on other items before they do with drugs and other medical essentials.
That’s not to say that the stocks of health care companies don’t fall when times get tough – they drop with the best of them. But because of the “safe-haven†status they carry, they will likely drop less than the rest, and they stand to gain a good deal when good times return.
Recently, times…
8Sep2008 | Oxbury Research | Comments Off | ContinuedHas Free Trade Joined Mexico and America At The Hip?
By Nick Thomas
Analyst, Oxbury Research
Or Can Mexico Be Considered An Independent Investment?
In the past week we’ve examined China and Japan, America’s two most important Asian trading partners, to see how they have fared in comparison with U.S. stock investments. Japan is an ally and China is either a wonderful trading partner or a potentially sinister rival depending on which politician and special interest group you interview. But how about nation closer to home?
How are Mexican investments looking at this point in time? Are they an improvement over the Dow or has the NAFTA-linked Mexican economy suffered as badly as homegrown…
2Sep2008 | Oxbury Research | Comments Off | Continued
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