End of QTR, Time for Assessment
The Third quarter ends today. I have to admit that we have reservations about a lot of things that have evolved over the past year and certainly this quarter and really don’t know where to start with comments today.
Overnight the market has rallied back some on hopes there will be a resolution in Washington, but watching the bill evolve does not give us a lot of confidence in the long-term direction. Our comments in the Sept. 22nd and 23rd posts are still as good as it gets from this end on solutions and we don’t see either ot those provisions being incorporated into the bill. We want to see transparency before the transactions, with regulated exchange based free market trading, An approach somewhat like what we suggested was discussed last Thursday on CNBC’s “Fast Money” and had support, yet we have not seen one politician mention it.
And this is what this is all about, politics and the economic meltdown end of the “Trickle Down” syndrome. The conservative Republicans who scuttled yesterdays bill are trying to hang on to some likeness of this concept, but it is over. Their ideas of providing some kind of insurance and getting FDIC involved may be a short-term band aid to add to the bill but until open exchange trading of all the pieces of the mortgage market are included, we are just pushing back the consequences.
We remain 38 percent long stocks and about 7 percent in short bonds.
7:37 AM CDT
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