Assorted Maalox Moments
What, no bonus this year?!!
July 30 – Bloomberg (Meg Tirrell): “Profits at U.S. companies may have dropped the most in at least a decade last quarter after credit writedowns triggered a combined $7.43 billion loss at Merrill Lynch & Co. and Lehman Brothers Holdings Inc. Earnings of S&P 500 Index companies have tumbled 24% from a year earlier, according to data compiled by Bloomberg on the 291 companies that had reported quarterly results… As recently as July 3, analysts expected a drop of 11%. Financial industry profits… have plummeted 87%... The energy group of the S&P 500 has posted a 15% gain in profits so far.”Buffy can't sell her summer home.
July 30 – Bloomberg (Sharon L. Lynch): “Home prices in the Hamptons, the summer haven of New York financiers and socialites, fell almost 12% in the second quarter from a year earlier as Wall Street firms cut jobs and the economy teetered near a recession. Sales dropped 26% and the median price slid to $970,000 in the resort towns on the East End of Long Island… broker Prudential Douglas Elliman Real Estate and appraiser Miller Samuel Inc. said… ‘We used to think of the Hamptons as insulated and that’s not the case,’ said real estate developer Arthur Rauscher… It’s not what it used to be.’” (Duhhh, ya' think?)Sleepless in New York July 29 – Bloomberg (Henry Goldman): “New York Governor David Paterson said the state’s economic slide has created a fiscal crisis so severe the Legislature must meet in special session next month. Paterson… said the deficit for the budget year beginning April 1, 2009, has ballooned to $6.4bn from a previously projected $5bn amid a slump on Wall Street… New York state, where Wall Street’s workers and businesses provide about 20% of state tax revenue, has been hurt as financial firms posted more than $468 billion in writedowns and credit losses... Sixteen of the state’s largest banks sent taxes totaling $5 million to the state treasury in June, a 97% decrease from a year earlier…” http://www.prudentbear.com/index.php/CreditBubbleBulletinHome
Oh Dobe, don’t worry. Cramer already said we hit the bottom last week. We should go straight up to Dow 18,000 from here.Besides I trust that all the CEO's of these companies have told the truth and I believe them when they say everything is OK.