In this podcast, Tom Mullooly discusses several reasons why Citibank would consider selling Smith Barney, to their competitor, Morgan Stanley. There are several reasons why Citibank may be considering this transaction, including: Citibank simply needs the money Volume...
Economic recessions and economic depressions Since 1854, the United States has been through 32 economic cycles, one cycle lasting (average) nearly 5 years. That's not the length of a recession, that's an entire economic cycle. This includes some...
[display_podcast] (Warning: math ahead!) Covered call writing is when you own a stock (or buy a stock today) ...and also sell (or write) a call option against that position. The main thing people forget about covered call writing is this: anytime you sell something,...
I don't know which side of the argument you fall on...bailout the automakers, or let them fail. But a very compelling, and well-written editorial was submitted to the New York Times by Mitt Romney. The question has been asked the last few days, "if the airlines can...
It's a little embarrassing to hear media folks on TV and radio asking questions Friday morning like: "Do you think the stock market will open today?" Wow. First, it shows how clueless many people in the financial media really are about markets. But questions like...
Take a walk with me down Memory Lane: 1973: S&P down over 17% (ouch) 1974: S&P down over 29%. (ouch again) The bottom for the S&P was reached in October 1974. And the bottom was reached -- yet again -- in December 1974. There was no advantage to jumping...
The Treasury announced they will begin to inject capital (money) into banks, under terms created under the bailout bill. This article will try to walk through, in English, what this all means. As part of the bailout bill (or TARP: troubled asset recovery plan), one...
Lost in the bailout mess comes this bit of interesting news for the automakers. The Wall Street bailout has taken most of the headlines, so you may have missed this: a bill set to be passed by Congress includes $25 billion in loans for General Motors, Ford and...
A client called me today, curious about buying shares of Fannie Mae and Freddie Mac. He said, "I'm sitting at home, watching the stock market channel and I'm amazed. I am seeing all of the shares of Fannie Mae and Freddie Mac changing hands. The stock prices are so...
That was the headline I found over at CBS Marketwatch. As usual, the news media is whipping (anyone who will read) into a frenzy about Lehman Brothers. More news may be forthcoming about Lehman -- between the time I finish writing this and the time you read this. I...
