vineri, 18 iulie 2008

through the looking glass...

I feel all of a sudden that common sense has nothing to do with it anymore...yeah it's the stock market and the irrational exuberance. first there's Well's Fargo that starts a rally ending up with the biggest gain in bank stocks in two decades (23% in one day). and all of that not because large profits or a restructuring success but because their profit dropped ONLY with!

then there's another rally today because Citigroup posted ONLY a $2.5bn loss instead of the $3.67 bn estimates...I mean WOW!! ain't that some good news?

then I remember that Citigroup has some $1.1 trillion assets off the books that are just waiting to see some writedowns and come back to the rooster... and I get a cold shiver down the spine.

that gets worse when I read about another disaster lurking in the shadows, the monster sister of Freddie and Fannie...

the fundamentals are still there. and still disastruous, no mather what looking glass you use.

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