The stock market remains soft as news of lower pending home sales for November, and the rumors of a potential bankruptcy for Countrywide Financial (CFC). Today’s news is weighing heavily on the entire financial sector.
According to Morningstar and Value-Line valuation ratios, many high quality banks are now trading at or below their respective book values. I’m confident in his next quarterly report; we will find that Warren Buffett was adding to his positions in the financials.
Gold soared to $875/oz this morning as investors are frightened that their US currency has become as worthless as wooden nickels, and our current officials in government don’t have a clue of what they are doing.
In other news;
-Hillary is crying.
If anyone should be crying it should be the nearly 50 million Americans who do not have health insurance, and probably will not get it if Hillary becomes President (God help us) since she became the second largest recipient in the Senate of health care industry contributions.
-Oprah promises Obama to get every idiot woman who will listen to her to vote for him.
- Our troops continue to die in Iraq to protect oil interests.
- Recession is the new buzz word for the economy replacing Goldilocks.
- Inflation is out of hand, but under control? That’s what we are being told. Go figure.
- Bear Stearns announce the resignation of James Cayne as chief executive. Who care’s. Its New York news and the rest of the country could care less who gets replaced at Bear Stearns, Merrill, or any other chop shop.
Our Fearless Leaders
Treasury Secretary Hank Paulsen was a guest host on CNBC this morning. When asked a question, he stuttered like Mel Tillis when giving an answer. His comments were not clear and concise, and in short, I didn’t get that warm fuzzy feeling after listening to him speak.
It’s really sad when a guy like Steve Leisman can express him self better that the US Treasury Secretary.
Investing in China
This market is due for a substantial correction. Investing in “everything China” reminds me of the days of investing in everything "dot-com". Be careful out there.
McDonald’s competing with Starbucks
Yeah, right. Since words cannot accurately express my rebuttal, I thought these pictures would.
Where do you want to go and buy your coffee?
Or...
Excuse me for a moment while I go get a cup of coffee from my 10 year old Mr. Coffee machine. Total cost for a cup- .10 cents.
Are Consumers Feeling Like Idiots Yet? No, but they will.
As if taking out interest only loans, or adjustable rate mortgages were not bad enough, I wonder how many consumers were stupid enough to buy a pair of $5 dollar sunglasses at Sunglass Hut for $150 bucks, or bought a $10 bag from Coach for $250?
Wouldn’t you think that products made with outsourced labor would cost us less?
How about;
- A $10 pair of shoes from Nike for $100 bucks.
-A $5 dollar shirt from Ralph Lauren for $75.
The list goes on and on…
The Birdseye View Report makes you look at things from a different perspective. While advertisers (TV, magazines, etc) try and create a glamorous image for the products they represent, we need to remember they are inexpensively made, and expensively sold. Call it high level pick pocketing if you will.
