Welcome to Chadwick's Corner
The Camel’s Nose is under the Tent, but at Least There is a Tent
October 15th, 2008
Or put another way, beggars can’t be choosers. Over the last few weeks, the world witnessed the impending annihilation of the financial markets worldwide with grave ramifications for capitalism globally. It was scary. And then help came in the form of Government intervention through a massive injection of equity capital into the banks. The UK led the way, and once it had taken that giant step, the U.S. had no choice but to follow suit.
Brace Yourselves
October 6th, 2008
We are heading into a full blown recession now and I cannot imagine that it will be ‘short and sweet’ as the last two were. As Rome burned last week and Nero (aka Congress) fiddled away, Main Street got the picture and started a boycott, not out of spite or anger but out of fear. Parking places were suddenly easy to find on Main Street because the shops were empty. Talking to people who have their life savings invested in stocks, bonds and cash, one can palpably sense their fear. I cannot remember a situation like this in the forty years I have been in the investment business.
I See the Light
October 1st, 2008
It came home to me loud and clear by mid-day yesterday why so many members of Congress simply could not vote in favor of the rescue bill before them now. The responses to my blog yesterday on CNBC.com “Why You Should Write Your Congressman” (Main Street, Wake Up… on my website) were easily ten to one in opposition of my support of passage of the bill. The language in some of the emails was simply unrepeatable and the vitriol and anger brought me back in time to my study of history. I had an image of Robespierre at the onset of the French Revolution with hordes of angry French citizens railing against the Crown.
Main Street, Wake Up!! – Wall Street is not your enemy!!
September 30th, 2008
Dear American Taxpayer and Voter,
For your own sake, I implore you to get over your anger at Wall Street fat cats – they have already lost more money than you will ever make. Neither you nor your Government gives a hoot about the loss of their personal wealth. Those fat cats have always known that theirs was a high risk career, which meant that in the good times they made scads of money and in the bad times they stood to lose it all. You could say they live by the sword and die by the sword and right now you are witnessing many of them dying by the sword.
“Canonize” Warren Buffett
September 25th, 2008
Last Friday, behind closed doors, Treasury Secretary Hank Paulsen and Federal Reserve Chairman, Ben Bernanke, gave Congressional leaders the Armageddon scenario for financial markets and the US economy and provided an emergency solution in the form of Government intervention. Because they are not fools, our Government leaders saw the light and in a televised speech they announced that they would set aside politics and join forces to enact legislation to secure the viability of the financial markets. That was last Friday.
Reinstate the Uptick Rule!!!
September 25th, 2008
The uptick rule made sense when it was instituted back in 1938 and 70 years later it still makes sense. Simply stated, the rule required that a short sale be executed only if the latest transaction in the stock was at a price higher than the previous trade, i.e. had been an uptick. The various arguments made for its elimination do not hold water relative to the rationale for its existence – as a check and balance against ‘bear raids’ on stocks. Its elimination was a mistake and the recent rampant and destructive bear raids on more than a handful of financial stocks is evidence of that mistake.
Wall Street Turmoil – Plenty of blame INCLUDING the Federal Government
September 17th, 2008
In the beginning – there were bad lending practices. And they are at the core of this extraordinary mess.
What was at the heart of the bad lending practices? The Federal Government!! Under both the Clinton and Bush administrations, it was government policy to encourage the private sector to ease underwriting standards in order to expand housing ownership in the U.S. The Federal Reserve under Alan Greenspan was an enabler in that development, by employing a monetary policy that kept interest rates exceedingly low, to the benefit of mortgage seekers. So lay blame on the US Government for bad policy.
Where is the outrage at the treatment of the FLDS children?
May 21st, 2008
Reading with horror about how small children are being separated from their parents and how siblings are being separated from each other by as much as hundreds of miles, with no sense of an end to this banishment, I keep asking, “What is the crime?” and “Who are the criminals?”
Patricia Chadwick
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