MASTER LIMITED PARTNERSHIPS

Monday, October 13, 2008

A one day gain of 21% which if you bought Friday you are in great shape...or if you are like every body else...dead cat bounce. Up 34 points on the MLP index to just under 200.

You gather my tone isn't exactly a happy one and this is because this bounce is long overdue and not a surprise considering the huge losses since September 1st and particulary since October 1st. I expect your accounts are all up huge today. But skepticism abounds.

4 comments:

Anonymous said...: Joe,

I share your sentiments. Its hard to get excited having taken the drubbing that we have. This rally is a start, but I don't trust the market.

FedUp; 10/13/2008 2:28 PM
Anonymous said...: Everything seems to swing on emotion. Today the world is elated with the G7 efforts. Perhaps that elation lasts for a while, perhaps it does not. Eventually, it seems to me, the market will return to worrying about any one of a number of things and then down we go.

I am trying to recall when the market bottomed after the '87 crash. I think it was December--despite a 5% rally right after the crash-- but I am not sure. Anyone remember?

Bruce; 10/13/2008 2:39 PM
joewxman said...: you are correct bruce it was december. But remember that was in the context of a secular bull and a year later most people got back everything they lost.

I have a feeling its different this time.; 10/13/2008 2:51 PM
Anonymous said...: 5:34 p.m.FDIC to insure all non-interest bearing bank deposits: WSJ

5:34 p.m.FDIC to insure new preferred debt issued by banks: WSJ

http://www.marketwatch.com/search/?doctype=3180&dist=hplatest_m
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This may be the beginning of the end of the banking crisis.
WSJ also reported that the treasury is set to inject 250 billion into banks ( I guess via preferreds).

They may require that the FDIC choose which banks they will insure, and to the extent that they can sell FDIC Preferreds, the treasury will match by buying preferred stock.

This will bankrupt any weak bank that doesn't get the FDIC approval to insure their preferreds.

HS; 10/13/2008 5:55 PM