Some people claim that Bailing Out is an art. Others think...

Some people claim that Bailing Out is an art. Others think it is a science. I think it is a bit of both. Regardless of what it is, if you are in a doomed relationship, it is best to get out of it as quickly as you can. This advice applies not only to personal relationships, but also to the stock market. If a stock is not loving you, why should you love it back? When it comes to stocks, the sane way to get out of a doomed relationship is to sell and never look back. The stock won't be looking back either so there really should be no hard feelings.

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Flashback December 21, 1999Meeting of the Federal Open Market...

Flashback December 21, 1999Meeting of the Federal Open Market Committee (FOMC)Following are some rather enlightening excerpts from that FOMC meeting. Note: FED meeting minutes are sealed for 5 years. The December 1999 meeting minutes were only recently made publicly available. Mr. Prell:Once again in recent weeks, the market has defied our notions of valuation gravity by posting an appreciable further advance. Moreover, it has done so in a way that seems to highlight the risk that it will continue doing so. I refer to the incredible run-up in “tech” and e-commerce stocks, some of which have entered the big-cap realm without ever earning a buck. To illustrate the speculative character of the market, let me cite an excerpt from a recent IPO prospectus: “We incurred losses of $14.5 million in fiscal 1999 primarily due to expansion of our operations, and we had an accumulated deficit of $15.0 million as of July 31, 1999. We expect to continue to incur significant...expenses, particularly a...
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The understatement of the month award goes to Garry...

The understatement of the month award goes to Garry Evans at HSBC for his comment on the Shanghai Composite Index 'I think the market had gotten a little too expensive'. BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? China's leading stock index tumbled nearly 9% Tuesday, marking its biggest plunge in a decade, on concerns of more economic tightening measures as China's parliament prepares for its annual session next week. The Shanghai Composite Index, which tracks shares listed on the larger of China's two stock exchanges, tumbled 8.8% to 2,771.79. The declines rank as its biggest single-day drop since the benchmark plunged 9.4% on Feb. 18, 1997, which reportedly came after the death of reformist Communist Party elder Deng Xiaoping. Analysts said the declines, which came a day after the Shanghai Composite ended at an all-time high, were sparked by concerns the government may implement n...
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Goldman is attempting to lay the blame for poor results...

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