Daily Archives: December 6, 2008

OPEC Finally Comes To Its Senses, Prepares Production Cuts

Tx00338coilwellgusherodessatexasposOPEC is sending strong signals that it will cut production ASAP before Venezuela and Iran have to file for bankruptcy and Putin is thrown into irons for ruining Russia’s economy. (Russia is not an OPEC member, but might as well be.)

With oil moving toward $40, down from $147 just this last summer, members of the cartel have seen remarkably sharp drops in their national incomes. Russia may well lose some of its military and geopolitical power. Invading Georgia may simply be too expensive, although the price of gas for tanks and personnel carriers will be down.

Many analysts expected OPEC to raise rates at it meeting last month. The fact that it did was surprising.

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Posted on: December 6, 2008 – 11:24 am in Oil & Gas

Big Company Stocks Under $1 And Those Heading There (TMA)(FNM)(FRE)(SIRI)(LVLT)(ETFC)(F)(C)(S)(NYT)(MNI)

R218533_855025Thornburg Mortgage (TMA) was just suspended from trading on the NYSE. Its price has been below $1 for too long. It trades at $.24. Extraordinary, because it 52-week high is $140.50.

Losses and fear of more losses have taken Fannie Mae (FNM) down to $.87. It traded as high as $40.45 a year ago. The situation is not much better at Freddie Mac (FRE). It sits at $.88 off its 52-week high of $37.18. Remember, these companies were the twin pillars of the US mortgage industry.

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Posted on: December 6, 2008 – 8:55 am in Cult Stock, , , , , , , , , , , , , , , ,

Detroit: The Smallest Bailout In The World

Batmobile512Detroit wants a dollar and it may get a dime. Congress may give The Big Three enough money to make it until early next year. GM (GM) and Chrysler are particularly desperate for funding. But, a small amount of cash will not do a thing to address industry problems.

Bankruptcies are still on the table.

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Posted on: December 6, 2008 – 7:25 am in Autos,