Stocks

So many stocks look so cheap.  Last night during Revolutionomics class at Seton Hall, my students and I ran through cursory balance sheet and price to earnings ratio analysis for a bunch of different companies. Great companies like Caterpillar, now down 70% from their recent highs, are trading at single digit P/E ratios.  Cat's gonna earn about $6 per share this year and with the stock ... read more

I'm sick and tired of waking up so sick of waking up sick and tired" -- Merle Haggard I'm sick of ranting about this $2.25 trillion bail out package that we just sent to the the Wall Street and other biggest banks in this country. But not quite as sick of ranting as I am by the fear-mongering cronies, their politicians and the rich elite pundits all of whom directly benefit from the bailout ... read more

Old man lying by the side of the road with the lorries rolling by, Blue moon sinking from the weight of the load and the building scrape the sky, Cold wind ripping down the allay at dawn and the morning paper flies, Dead man lying by the side of the road with the daylight in his eyes. Dont let it bring you down, its only castles burning, Find someone whos turning, and you will come around. ... read more

I wrote on Monday about following the playbook that I'd outlined last week -- that you wanted to sell the record-breaking rally on Monday, when the DJIA clawed back above 9000.   Well, this is why we put together a play book to begin with.  (I read on Peter King's Monday Morning Quarterback this week that Paul Brown of the Cleveland Browns invented the playbook...come on, surely other sports ... read more

When your lonely heart breaks Don't sit counting your mistakes Don't be waiting for love to come back Don't be wastin' time Don't be lost in crime When your lonely heart breaks -- Neil Young Well, we're above 9,000 again.  We're up 8% plus from Friday morning's crash's crash.  And as I wrote Friday morning when  the markets were below 8300 -- "Of course, you’ll want to sell any ... read more

I've been thinking long and hard about the things you said to me, like a bitter stranger, and now I see the long, the short, the middle and what's in between, I could spit on a stranger. -- Pavement This is just hard, treacherous stuff.  I wish it were easier, I wish this weren't happening.  But as my high school JV basketball coach once quipped, "You can wish in one hand and spit in the ... read more

What a far, far way we've fallen since the heady days of just last year, when Private Equity and the Investment Bankers who cater to them were ruling the world. I wrote this back in July 2007 What I really don't understand from these pundits who keep talking about the global repricing of risk somehow not being related to the economy, is what these guys think makes our economy run. I mean, do ... read more

Yesterday is dead and gone and tomorrow's out of sight And it's sad to be alone. Help me make it through the night. - Kris Kristofferson Here's the most frequent question from readers and viewers lately: The Wall Street Bailout Bill is passed. Cody, what do you suggest we do now? You guys know that I've been saying we'd head much lower when this TARP bill passed...and indeed, ... read more

As Milton Friedman would have told them as he railed against the loss of freedoms inherent in this TARP Bailout Bill of 2008, "There's no such as a free lunch." I don't know what else to say here.  They've passed the bill that enables one unelected Tarpzar, also known as the Treausury Dude, to deem any financial institution or insurance company an "agent of the US government".  That ain't ... read more

After carefully considerin' the whole situation I stand with my back to the wall Walkin' is better than runnin' away and crawlin' ain't no good at all And if guilty's the question truth is the answer I've been lyin' to me all alone There ain't nothin' worth savin' except one another And before you'll wake up I'll be gone Cause after carefully considerin'... After carefully ... read more