Don’t touch the equity

My view is that it’s not over yet. Whatever things are happening (Brown bailout of UK banks, US bailout of US banks, EU bailout of EU banks), it’s not the ninth inning yet. The crisis is moving from wall street into main street. Consumers are stretched, a lot of corporates are doomed to fail or suffer severely, starting from retailers and house builders. There is a lot of uncertainty, and the house...

Meltdown Monday

It was another black Monday for Wall Street after the Congress hasn’t passed the mother of all bailouts. I will skip the details, as the whole press world is doing already a very good job at covering what’s happening. Just one quick point. The Dow closed at the very bottom, lacking the support of the short sellers that (guess what?) would have been around to cover the short positions mitigating a very...