Apparently a lot of risk is the answer. I’m not sure why we should be happy that they reduced leverage from 40:1 down to 22:1.
Everyone is talking about LEH…After hitting $15 and change I’d say there is something to talk about.
Bill Gross believes as long as the Fed’s discount window is open then no one will fail. He has also stated that he continues to trade with them….LEH that is.
If you ask me dealing with ill liquid securities would keep me open to trading with them hoping for a bid or some sort of exit strategy.
I know that I have been struck with the homo hammer in UNH and TSO. I do not want to uderstand why a company with positive cash flow and is not leveraged 22:1 gets more of a homo hammer than a company like LEH or C….
Merideth Whitney talks of tangible book value….I’m talking about positive cash flow.
Now the tv is talking about FNM raising $75 billion. Along with FRE they are holding $1.5 trillion in loans.
Why is Paulson even saying they are not to big to fail or even that they government might not back them? It is a government backed agency.
If you ask me between Paulson and Bernanke today nobody seems to really know what is going on here.
Did you see Ron Paul today wish that guy was still running for president.
So here we are another head fake in the market and oil is racing higher. See you later TSO…
GLT
by GW
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I’m seeing bear flags in coal …. is it just me or do you see it too?
E’8,
I have noticed it. The only question is will coal become a viable energy source for our vehicles?…. Most of the coal stocks can not withstand to much more downside before the charts look like shorts.
I would refrain from shorting these just yet. Let’s see what oil does. If it picks up more steam and breaks out, I’m sure the natty gas and coal plays will come back nicely too.
I have a minor position in ARLP. Bought it in the mid 30’s for the divi.
Last year I was in BTU, but I sold a little early. Lately I have’nt been into coal.