Original post:
Here's what we were reading that Thursday before the world turned upside down.
Hedge funds caught out as Hurricane Gustav fails to lift oil price
HSBC says super-rich clients moving into cash
Bill Gross: Big Bet, Big Fail?
Pimco: Treasury needed to stop asset deflation:
“To stop a sell-off of debt and other assets, the U.S. government will have to bring in new policies to open up the Treasury Department's balance sheet, said the manager of the world's biggest bond fund on Thursday.As Potash Corp. shares plummet, RBC predicts stock will double (POT)
"If we are to prevent a continuing asset and debt liquidation of near historic proportions, we will require policies that open up the balance sheet of the U.S. Treasury," wrote Bill Gross, chief investment officer of Pacific Investment Management Co, or Pimco, in his September Investment Outlook.
"To ultimately stop this asset/debt deflation, a fresh and substantial new source of buying power is required," Gross wrote....
...You see, Bill Gross is balls deep into Fannie Mae (FNM) and Freddie Mac (FRE) agency debt. He bet big on a bailout that would make him whole. The rat-bastard will only make money if taxpayers get raped.
And finally, one of the worst analysts ever. Do note, Oil had seen its all-time high on July 11 at $147.27 and was on its way to the $30's by December:
Continental Airlines: Oil Spike Not Over, Stock To $9. Or $45. Whatever (CAL)
We last visited Credit Suisse's airline analysts on August 13, keeping tabs on one of the most untimely calls I've ever seen. In "How (not) to Do Stock Price Forecasting- Credit Suisse Edition"
...The point is, fundamental analysis will help you avoid disaster but it doesn't forecast prices.That post was a follow-up to July 22nd's "Ahem... US Airways and UAL are Up... (LCC; UAUA)"
Thirty days ago Daniel McKenzie, airline analyst at Credit Suisse, cut his outperform ratings on Continental and American Airlines to neutral, after they had declined from $37.79 to $6.74 and $51.60 to $3.43 respectively.
The next day they bottomed out and are up 160% and 270% in the last thirty days.
So working at a big firm doesn't really help....
