Aug

30

1. A strange anomaly: during the last six days, closes of S&P: 1025, 1025, 1026, 1027, 1029, 1029. Never since 1996 has the market been in such a tight range on six consecutive days. Something's got to give, and as M. F. M. Osborne would say, "someone's going to eat crow, raw squawking and fully feathered."

2. C to above 5 and AIG to above 50 are symbolic of the ability of out of favor stocks to regain mojo. Apparently the government is very shrewd in its investments and/or the provision of debt and guarantees of 20 times the market value of these companies when provided was a valuable resource. Let us hope that the expectations, risk aversions, reallocations, incentives, and entrepreneurial drives of others will not be in any way negatively impacted by these great success stories.

3. Many markets are setting news highs these days including equity markets all over the world, fixed income markets, and oil. This is a very halcyon condition.

4. An article about the receiver collecting assets in a fraud case says that a plaintiff advocate is complaining that the receiver has billed the court at a rate greater than the measly $84 million he has collected in 24 weeks. He has 80 accountants and 100 lawyers working on the case. The lawyer has pointed out that he has already discounted the bills by a generous 20%. One neutral observer from the grandstand would say this is a case of sour grapes, and why should this case be any different from any other where the only thing left after two dogs fight for a bone are the fees?


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