Tuesday, 23 September 2008

Strictly Business: The Roller Coaster Ride Continues

Stocks are still going up and down like a whore's drawers, but there are a few rays of light at the end of this tunnel. First, Warren Buffet, King of the Investors, is putting $5 billion of his own moolah into the battered Goldman Sachs, after their transformation from being an investment bank to a commercial bank.

Now some of the experts are saying that Buffet's actions are born from decades of weathering storms going back to McKinleynomics. Also many of these experts are saying that while housing prices may fall further still, the Mortgage Backed Securities are worth even less. And even the worst case scenario says that around 10% of mortgages may default, that still leaves 90% paying their mortgages on property that's still worth more than the paper the mortgages are written on. So even the defaults could turn profitable.

There are also reports of the FBI possibly calling shenanigans on the goings on at Fannie Mae, Freddie Mac, and AIG. This comes after allegations of profit overstatements, phantom mortgages, and other monkey business.

So just stay calm. This will end, but the world won't.

And since all I did was talk about money here's a picture of the stunning Zooey Deschannel to brighten an otherwise dry post. Thanks.

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