|
Enter: KPMG
A well-known short term trading idea on BCE - and the entire deal to take the company private - was majorly derailed this morning. What was not anticipated was the emergence of a requirement that KPMG render an opinion on whether BCE would meet the solvency tests as defined in the difinitive takeover agreement. It is time to now take a much closer look at an investment in BCE as a going concern public company.
Our Portfolio Advisory Group makes a case for this here. |
|
|
BMO Financial Group - Excerpts from Basic Points, November 2008
No matter how one slices it, a 48% plunge in the Dow is a huge Bear and nothing since 1929 has exceeded it. Since there is only a superficial comparison between the world of today and the world of 1929, we must assume that this market should be near the peak of her savaging. Four indicators will, collectively, signal that the Bear has done her worst:
1. The TED Spread
Longtime readers know how we cherish this indicator - the yield differential between the front-month 90-day T-Bill and Eurodollar contracts. It has kept its 100& accuracy rating through all the financial crises since 1974. Why does it work? |
|
Read more...
|
|
Overview from strategist:
The global financial crisis that
began on Wall Street could mark the end of the Reagan-Thatcher era in which
capitalist economic principles gained acceptance across most of the
world.
Wall Street's excesses and blunders
sent the US and much of the world into recession. The worst month for US
stocks in decades amid panic about a 1929-style collapse also proved to be the
crucial factor in turning an electorally decisive 6% of undecided American
voters into enthusiastic Democratic voters, electing a President and Congress
determined to change the consensus on the respective roles of capitalist
principles and government in the economy. |
|
Read more...
|
|
|
From a survey released today by the Philidelphia Federal Reserve. Economists see 14-month U.S. recession that began in April. |
|
Read more...
|
|
The Crisis & What to Do About It
The salient feature of the current financial crisis is that it was not caused by some external shock like OPEC raising the price of oil or a particular country or financial institution defaulting. The crisis was generated by the financial system itself. This fact—that the defect was inherent in the system —contradicts the prevailing theory, which holds that financial markets tend toward equilibrium and that deviations from the equilibrium either occur in a random manner or are caused by some sudden external event to which markets have difficulty adjusting. The severity and amplitude of the crisis provides convincing evidence that there is something fundamentally wrong with this prevailing theory and with the approach to market regulation that has gone with it. To understand what has happened, and what should be done to avoid such a catastrophic crisis in the future, will require a new way of thinking about how markets work. Read full article here. |
|
|
|
