AGORACOM Small-cap Investor Relations Blog

(Thanks to Rob Hyndman for finding this)

The Washington Post did some great (and fast) work today by geo-analyzing the votes on today’s Bailout Bill.  It can best be summarized as follows:

It’s no coincidence then that of the 205 Members who voted in support
of the bill today, there are only two — Reps. Chris Shays (R-Conn.) and
Jon Porter (R-Nev.) — who find themselves in difficult reelection races
this fall. The list of the 228 “nays” reads like a virtual target list for the
two parties.”

In other words, this bill was doomed from the beginning. It had nothing to do with “bi-partisan / let’s save the economy” patriotism.  Just a bunch of politicians looking out for their own paycheck before 300,000,000 others.

I had no problem with the outcome of the vote. Democracy rules. This wasn’t democracy.

p.s. A fantastic map here if you want to see how your state voted. Check out Florida, New York and Washington.

Regards,
George

Somebody at Marketwatch.com is either completely busted, or savvy enough to try and bring some levity to the day.  You decide after looking at the following:

If you’re trying to catch up on the day’s events, check out our Twitter entries today. More than headlines, you’ll enjoy the intricate coverage all in one page.

Regards,
George

226 NO

207 Yes

Republicans vote 2:1 against their own President.  George Bush speech at 7:30 AM was not enough to rally his own troops. Very surprising but speaks volumes.

However, vote has been left open as leaders of both sides try to convince members to switch their votes.  Long shot but who knows what can of pressure can be applied.

Full details and update on my twitter account

Barry Ritholtz is one of the smartest and most-respected economic commentators on the planet. Like myself, he has largely advocated against messing with the free markets and just taking our medicine to get this mess over with.

For those of you who aren’t familiar with Barry or his position, the following quick read is highly recommended.

Though I do agree with Barry, I do concede that it is much easier to take the position when you don’t sit in any kind of fiduciary position to the country.  If you’re an elected or appointed official, it is pretty tough to shun the human instinct to solve the problem by doing something.

Regards,
George

Not to gloat folks but I called $120 $AAPL back in June when it was trading over $174.00.  Apple fell through $120 this morning on both market weakness and, more importantly, these downgrades.

The real back-pat here comes from comparing the reasons for the downgrades with those I gave back in June.  If you don’t have time to go over them, let me sum it like this:  Higher oil prices + falling economy  = bad news for expensive Apple items.  I predicted consumers would substitute cheaper/good enough products to get the job done.

Today, Morgan Stanley states:

“Morgan Stanley analyst Kathryn Huberty cited a “decelerating” growth in
personal computer unit, while noting that the remaining source of growth
was increasingly in the sub-$1,000 market where Apple does not play.”

RBC states:

“…recent declines in consumers wanting to buy a Mac desktop or laptop
were the biggest in the last two and a half years.”

PYMWYMI – Put Your Money Where Your Mouth Is.

UPDATE: Apple trading at $110-$111 as of 10:10 AM.

Regards,
George

In March, the investment banking industry looked pretty healthy to most observers.

Today, the five biggest independent Wall Street firms have all disappeared.

1. Bear Stearns – Forced into a merger with JPMorgan Chase in March.
2. Lehman Brothers – Declared bankruptcy last month.
3. Merrill Lynch – Acquired by Bank of America last week.
4. Morgan Stanley and Goldman Sachs – Changed their corporate structures to become bank holding companies last week.

Remember, this list is in addition to bank failures such as IndyMac and the WaMu takeover while the CEO was on a plane.

Readers of my blog know that some bank failures were in the cards and shouldn’t be surprised but even I didn’t foresee this kind of carnage. Perhaps even more surprising is the fact that gold is not sitting at $1,500 right now…but $1,000+ gold has to be in the cards over the next couple of months.

Until then, move over Chriss Angel and David Blaine, there’s a new disappearing magic act in town.

Regards,
George