News from around the web: 2009-08-16
This article uses the term ‘undervalued.’ You have to sceptical about that kind of terminology given how expensive housing still is in places like London.
Add Japan to the list of countries with ‘statistical’ recoveries. Of course, in nominal terms, the economy still shrank.
I have to say, I view this claim with scepticism. But, it’s interesting.
The President is making Op-Ed contributions in the NY Times? I guarantee there will be huge press coverage of this.
Thaler shows that government usually loses in competition with private industry.
Another buyer beware article. Good info on Paul Tudor Jones and the documentary film that vanished from YouTube because of copyright.
Retail is another place to avoid in Q4. They will underperform as consumption is the weak link.
This has been a junk rally. Going forward, junk will sell off, quality will outperform.
More fear-mongering in public policy debates. Pathetic. This is straight out of Lee Atwater’s playbook. Despicable because people can be manipulated, but shrewd AND effective.
Swedbank in Sweden is trying to raise 15 billion SEK via new stock issuance.
https://www.cnbc.com/id/32443491
Swedbank, naturally, claims that this has nothing to do with the toxic loans from the Baltic states on their books. (Yeah, right…)
Who in their right mind would massively dilute their stock via a new emission in this market? My bet is they find few takers at any price.
The Swedish government has already told SE Bank and Swedbank that they need to cover 16 billion SEK in losses on their own. The government has promised to cover an additional 16 billion SEK above this amount and has also asked for a 100 billion SEK credit line from the IMF in anticipation of problems in the Swedish banking sector.
My read on the Swedbank stock issuance is that they do not have the reserves to cover the initial 16 billion SEK in loan losses and are trying to raise it via the Swedish stock market. I predict it will go belly up sometime in early Fall 2009.