From day to day the roller coaster continues to be mind boggling and frankly nauseating so lets shift the focus briefly from the markets to Inergy LP which is issuing guidance for 2009 this morning ahead of its anal-ist meeting at 9am. What i don't know is if that guidance is being raised, lowered or they are just affirming prior guidance or if this is new guidance. I will try and find out. Meanwhile we have firm energy this morning with crude up 2 and nat gas up a dime or so.
Warren Buffett is on CNBC right now. He says that he would not have taken the Goldman stake now if he wasn't sure about the bailout passing. And he says that last week's near collapse was real and that we were on the edge of the abyss. So on that happy note we have firmer stock futures although off their highs. No other news this morning on the corporate front. Nothing on the upgrade downgrade list.
Finally another government agency is in need of money. They get less funds then defence which is just plain absurd given its importance to our survival.
Wednesday, September 24, 2008
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joseph cioffi's Source Page - Associated Content
6 comments:
Paulson chose to bring us to the edge of the abyss in order to get Congress serious about a bank bad asset bailout.
Lehman did not need to fail, it needed to be taken under by another bank at $1.00 a share ( with Fed support ).
HS
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Part of the language of Paulson's bill that Sen. Dodd objects to:
"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."
I wonder what would happen if Paulson would Decide + Impliment a rule that Credit Default Swaps are insurance and enforcable only if a company has an "insurable" interest.
IE: if you own a bond it's legitimate to enter a credit default swap, if you don't own such a bond, you can't bet that the bond will default.
HS
According to blooberg's Tom Kaine(Sp?) constituants are 10 to 1 against bailout.
Other polls were 55 to 45 against.
We are in for a world of trouble.
I think Inergy was paying about 8% interest ( their new fiscal 2009 annual guidence is 80-84 million in interest payments ).
Their Net Income Allocable to Limited Partners is $ 54 to $ 58 million.
If their interest rate goes up significantly ( I don't know their capital needs ), goes to an average of 10% , that would raise their interest cost goes up 16 million and their Net Income Allocable to Limited Partners would go down to 38 to 42 million.
And it could be far worse if average interest rates go higher than that.
Congress will pass the rescue plan. They don't have the balls to vote NO.
"Congress will pass the rescue plan. They don't have the balls to vote NO."
Many don't have the brains or common sense to vote YES.
Bruce
Bruce,
Good point.
The only thing that will heal this market is time.
Mr. Majestyk
Bernanke is basically saying:
We are in deep Shit.
Now is the time for Congressmen to be Statesmen.
HS
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I'm reminded of a Mark Twain Quote:
"Suppose you were an idiot and suppose you were a member of Congress. But I repeat myself."
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