Merrill posted one of the worst quarterly results you could ever imagine. On a much smaller asset base, it posted a write-off and loss as bad as Citi. I agree the fed shouldn't guide CEO salaries, but its ridiculous to have Stan O'Neal walk away with 140 mn (or was it 160 mn?!!) after such a pathetic mess! Corporate America needs to find a way to tie contract provisions on CEO/COO severance packages to current firm profits/performance at the time of severance!
Ben Bernanke talked about a fiscal stimulus package - a probable USD 150 bn rescue package consisting of financial support to the sub-prime mortgage market (to prevent / reduce foreclosures), tax cuts etc. Why the hell did the market react the way it did?? When you are facing a slow down with more than 80% of market pundits betting on recession, what else would Ben do - not come with any stimulus package and sit tight?...have the market to figure out a way to manage itself??? As expected, you had all the experts in CNBC bitching Bernanke again - what do these guys want? Stubborn adherence to a pure monetary policy strategy will NOT yield results in such a market scenario. More on this whole thing in my Saturday blog - i need more time to vent my anger!
Meanwhile, i keep my view - th market is over sold! If you have guts, enter now and hold for 6-12 months. Else, wait till Jan end and plunge in.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment