As you can see here, the Nasdaq is right between the doomsday channel and the recovery-to-a-new-high channel. Basically no-mans land. Today after hearing the news of the European Money Market fund being marked down from a par value of 110 to 85 (roughly from the chart shown on TV) I decided to go on defense. I spent most of the day making sure all my bank and brokerage accounts were "safe". I siphoned off excesses over the 100K FDIC limits on my bank accounts and had my brokers take me out of their money market funds in favor of gov't securities backed cash accounts. Why? Because no one at the brokers could swear that they didn't have any of the toxic waste (CDOs) in their money market funds. All they could say is they were AAA rated - well so were the CDOs. Until this situation on the chart above resolves itself one way or the other, there is no sense to me in being long or short this market, so.. sidelines it is. I recommend a full on review of your accounts to be darn sure you are not exposed to the toxic waste. Imagine if you were in that European MM fund, last nite when it closed. If you had 110K in it yesterday, today it is 85K...
And check this out tonight from Citibank per FT....
http://www.reuters.com/article/marketsNews/idUKN1014789520070810?rpc=44
Citigroup has $500 mln credit business loss - FT
NEW YORK, Aug 10 (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research) has lost more than $500 million in "credit business" in recent weeks, the Financial Times said on its Web site on Friday, citing an unnamed person briefed on the situation.
The loss was largely in Citigroup's structured credit business, the newspaper said, and is in addition to potential losses from the bank's lending commitments related to leveraged buyouts.
New York-based Citigroup did not immediately return calls seeking comment. (Reporting by Jonathan Stempel)
Edited by SemiBizz, 10 August 2007 - 07:51 PM.
