NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by The Bellwether Report.

DETROIT, Aug. 21 (UPI) -- Wayne County, Mich., Prosecutor Kym Worthy says she has joined the growing list of Detroit residents whose homes are in foreclosure.

SACRAMENTO, Aug. 15 (UPI) -- The California attorney general disclosed Friday he is in negotiations with Bank of America, the parent of Countrywide Financial Corp., Legal Newsline reported.

LOS ANGELES, Aug. 15 (UPI) -- Real estate mogul Donald Trump reportedly is buying television personality Ed McMahon's Beverly Hills, Calif., house to save it from foreclosure.

CALABASAS, Calif., Aug. 8 (UPI) -- U.S. market regulators and the FBI are investigating California mortgage giant Countrywide Financial Corp., various officials said.

HARTFORD, Conn., July 25 (UPI) -- Connecticut Sen. Chris Dodd said he plans to give additional details about his home loans amid accusations he received special treatment as a Senate member.

Filed under: Rants and raves, Citigroup Inc. (C), JPMorgan Chase (JPM), Bank of America (BAC), Merrill Lynch (MER), Federal Natl Mtge (FNM), Countrywide Financial (CFC), Amer Intl Group (AIG), Wachovia Corp (WB), Wells Fargo (WFC), Bear Stearns Cos (BSC), Recession

Everything is upside down these days. The folks with all the money and multi-million dollar bonuses are begging for a handout on the pretext that the economy will crash if they do not get one. We're not talking money for coffee or a snack, we're talking billions of dollars.

It is crashing anyway, or at least sinking. It is just a matter of what it takes down along the way. Apparently, the folks at the Treasury and Federal Reserve are now convinced that it will be everything.

The survivors are pawing at the defeated as Wells Fargo tries to grab Wachovia despite its previous tentative agreement with Citigroup Inc. (NYSE: C). While Citigroup gained a point in Wachovia deal over the weekend, the balance has since tilted in favor of Wells Fargo again.

Bank of America (NYSE: BAC) gobbled up Countrywide (done) and Merrill Lynch (NYSE: MER) (a work in progress), while JPMorgan Chase (NYSE: JPM) corralled Bear Stearns and Washington Mutual (NYSE: WM).

Sadly, only the federal government was big enough to swallow the problems of American International Group (NYSE: AIG), Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). Otherwise,those in the know think world financial markets would have crumbled due to the collateral damage, (pun intended).

When I posted Congress is screwing up -- think backstop not bailout!, I was concerned as much with the psychological effect as much as the financial effect of not approving the funding, but no doubt the people suffering the most are not those who created the pain.

I feel for the middle class weakened by the economy and economic policy that allowed us to pretend we were better off then we were, and are. Very few people this election season are talking about the people at the bottom.

While I have lost money this year along with most of the people who will be reading this rant, I will not have trouble putting food on the table, filling my tank with gas or paying the mortgage. Some folks will...and worse!

This got me thinking recently about how often someone says that I should not be giving handouts to people in the street. Have you ever had an acquaintance tell you not to give to the panhandlers and homeless in the street because you are just supporting their laziness, addictions and afflictions?

What are we doing for the bankers right now? I find it ironic that the biggest beggars of all time have turned out to be the well-to-do and well-connected on Wall Street. Yet some will still spend energy denying a doughnut or a sandwich to a person in obvious need.

I would rather take the chance of being fooled by a person in the street, than deny someone truly hungry meager assistance. I guess Washington feels the same about the Wall Street gamblers. We need to support them in their time of crises. This may be sad, but true.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of JPM and WFC and I owned shares of BSC, and WM.

 

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Filed under: Rants and raves, Citigroup Inc. (C), JPMorgan Chase (JPM), Bank of America (BAC), Merrill Lynch (MER), Federal Natl Mtge (FNM), Countrywide Financial (CFC), Amer Intl Group (AIG), Wachovia Corp (WB), Wells Fargo (WFC), Bear Stearns Cos (BSC), Recession

Everything is upside down these days. The folks with all the money and multi-million dollar bonuses are begging for a handout on the pretext that the economy will crash if they do not get one. We're not talking money for coffee or a snack, we're talking billions of dollars.

It is crashing anyway, or at least sinking. It is just a matter of what it takes down along the way. Apparently, the folks at the Treasury and Federal Reserve are now convinced that it will be everything.

The survivors are pawing at the defeated as Wells Fargo tries to grab Wachovia despite its previous tentative agreement with Citigroup Inc. (NYSE: C). While Citigroup gained a point in Wachovia deal over the weekend, the balance has since tilted in favor of Wells Fargo again.

Bank of America (NYSE: BAC) gobbled up Countrywide (done) and Merrill Lynch (NYSE: MER) (a work in progress), while JPMorgan Chase (NYSE: JPM) corralled Bear Stearns and Washington Mutual (NYSE: WM).

Sadly, only the federal government was big enough to swallow the problems of American International Group (NYSE: AIG), Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). Otherwise,those in the know think world financial markets would have crumbled due to the collateral damage, (pun intended).

When I posted Congress is screwing up -- think backstop not bailout!, I was concerned as much with the psychological effect as much as the financial effect of not approving the funding, but no doubt the people suffering the most are not those who created the pain.

Continue reading The beggars of Wall Street

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Someone asked me the other day what I thought about Congress trying to curb executive compensation as part of the (now failed) bail-out package. I responded that I believe this is one of those classic misdirections put out by the government where the public focuses on one thing which, emotionally, is a nice hot-button topic to  act as a smoke-screen for what truly is going on. Very slowly and very steadily, the greatest banking consolidation in history is happening right before our eyes with the government’s blessing and depending on your point of view, this is either one of the best or worse things to happen.I am not a big believer in conspiracies and shadowy men in shadowy rooms plotting our collective demise.  The roots of the consolidation almost seems more accident than design. But, facts are facts. The early and clear winners in the credit crisis so far are (in no particular order): Bank of[More...]

Filed under: Google (GOOG), Wal-Mart (WMT), AT and T (T), Citigroup Inc. (C), Money and Finance Today, Merrill Lynch (MER), Countrywide Financial (CFC), Yum Brands (YUM), Southwest Airlines (LUV), Contl Airlines'B' (CAL)

In the News:
Trading Strategies for October
Following the most volatile September in memory, here are 10 ways to play the year's scariest month.
http://www.marketwatch.com/newscommentary/tradingstrategies

Payout Jackpots for Credit Crunch CEOs
Though they were at the helm of companies that were bruised or broken by the credit crunch, these 12 CEOs were still offered big severance packages when they were shown the door. They include Merrill Lynch's Stan O'Neal who got $161 million, Citi's Chuck Prince $105 million and Countrywide's Angelo Mozilo $100 million to name a few.
http://www.cnbc.com/id/26959512

Continue reading Trading strategies for October, Payout jackpots for credit crunch CEOs & small biz woes - Today in Money 10/1

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Filed under: Google (GOOG), Wal-Mart (WMT), AT and T (T), Citigroup Inc. (C), Money and Finance Today, Merrill Lynch (MER), Countrywide Financial (CFC), Yum Brands (YUM), Southwest Airlines (LUV), Contl Airlines'B' (CAL)

In the News:
Trading Strategies for October
Following the most volatile September in memory, here are 10 ways to play the year's scariest month.
http://www.marketwatch.com/newscommentary/tradingstrategies


Payout Jackpots for Credit Crunch CEOs
Though they were at the helm of companies that were bruised or broken by the credit crunch, these 12 CEOs were still offered big severance packages when they were shown the door. They include Merrill Lynch's Stan O'Neal who got $161 million, Citi's Chuck Prince $105 million and Countrywide's Angelo Mozilo $100 million to name a few.
http://www.cnbc.com/id/26959512


Small Businesses Struggling to Hang On Across USA
Small businesses are in a very tough spot right now. They are right in that little crevice where money is tight - and getting tighter. Right where weekly payrolls can be financed only by personal credit cards or home equity loans. And right where "income" for the boss is taking five bucks from the till and paying for a sandwich that day for lunch. It's where bankers and other lenders decide if their small business will get money to buy goods, expand or pay employees - or not. The economy is very scary right for many small business owners.
http://www.usatoday.com/money/economy/2008-09-30-main-street-small-business_N.htm?loc=interstitialskip


Food Now Gets Label of Origin
Coming soon to an apple, a pound of hamburger or a head of lettuce near you will be a label that says what country the item came from.
http://www.usatoday.com/money/industries/food/2008-10-01-food-labeling_N.htm


0% Credit Card Offers May Soon Disappear
New restrictions may result in the end of 0% credit card offers. Get in while you can.
http://www.smartmoney.com/deal-of-the-day/index.cfm?story=Zero-Percent-Credit-Card-Offers-May-Soon-Disappear


Don't Hide From Your Quarterly Statement
Quarterly statements from your brokerage account or retirement plan will soon be in your e-mail or snail mail and the odds are it won't be pretty. Burying your head in the sand won't put a dime back in your portfolio -- but keeping informed and diversified might<.
A HREF="http://www.bankrate.com/brm/news/pf/personal-finance-news-a1.asp"> http://www.bankrate.com/brm/news/pf/personal-finance-news-a1.asp


A Business Plan for the Catholic Church
A group of execs are putting management skills to work on shaping up the U.S. Catholic Church.
http://www.businessweek.com/managing/content/sep2008/ca20080930_431981.htm?campaign_id=twxa


Scams and Shams That Prey on Cancer Patients
In some cases, unproven 'therapies' can be dangerous, experts say.
http://www.businessweek.com/lifestyle/content/healthday/619383.html?campaign_id=twxa


The Last Typewriter Repairman?
Every business day, as he has done for the past 49 years, Paul Schweitzer, travels the streets and skyscrapers of Manhattan making "house" calls, carrying his black leather tool bag by his side. Schweitzer, who insists on wearing a suit and tie while on his rounds, is one of the last of his kind: the typewriter repairman.
http://www.businessweek.com/smallbiz/content/sep2008/sb20080925_900705.htm?campaign_id=twxa


Florida's Unlikeliest Folk Hero
Meet strip-club king Joe Redner who turned the nude lap dance into a $25 million fortune but still longs for a place in Florida politics.
http://www.portfolio.com/culture-lifestyle/culture-inc/arts/2008/10/01/Joe-Redner-Profile

 

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Schaeffer's Laura Houser takes a look at activity on the Street after the market close

Schaeffer's Laura Houser takes a look at today's options activity

Schaeffer's Laura Houser takes a look at today's options activity

Schaeffer's Mark Fightmaster takes a look at activity on the Street after the market close

Guests: Greg Ip, WSJ and Jon Markman of MSN Money look for answers to many of the questions investors are asking: What will the Fed do? Will food costs continue to rise? Recession? Markets? Best strategies for profits in difficult market conditions. $85 for sushi for 3: Greg provides Andrew with a solution...