There is no right answer, since we have no idea ahead of time, but looking at the biggest S&P 500 declines over the last 35 years can shed some light on what would be typical for a deep decline. Some pretty interesting similarities here. I will update this chart as times goes on. ... Read more

History tends to repeat itself. The economy and the stock market are no different. We have had, and will continue to have, economic expansions followed by recessions. To give you an idea of what to expect, consider the last recession. It was the result of another bubble bursting (in Silicon Valley ... Read more

History tends to repeat itself. The economy and the stock market are no different. We have had, and will continue to have, economic expansions followed by recessions. To give you an idea of what to expect, consider the last recession. It was the result of another bubble bursting (in Silicon Valley ... Read more

As was widely reported, Citigroup (C) and Wells Fargo (WFC) were the two top bidders for Wachovia (WB). After Wells dropped out, Citi got some help from the FDIC and a sweetheart deal. For about $2 billion in stock they landed Wachovia's banking operations. Evidently, Wells Fargo management was pret ... Read more

As was widely reported, Citigroup (C) and Wells Fargo (WFC) were the two top bidders for Wachovia (WB). After Wells dropped out, Citi got some help from the FDIC and a sweetheart deal. For about $2 billion in stock they landed Wachovia's banking operations. Evidently, Wells Fargo management was pret ... Read more

Warren Buffett is stepping up to the plate again, buying $3 billion in 10% preferred stock from General Electric (GE), after adding $5 billion of Goldman Sachs (GS) preferred just days ago. Many are focusing on the confidence factor the Buffett moves suggest, which I agree with to a large extent. Ho ... Read more

Warren Buffett is stepping up to the plate again, buying $3 billion in 10% preferred stock from General Electric (GE), after adding $5 billion of Goldman Sachs (GS) preferred just days ago. Many are focusing on the confidence factor the Buffett moves suggest, which I agree with to a large extent. Ho ... Read more

I am a little confused. How will removing the mark-to-market accounting rule, an idea that is rapidly gaining traction, help solve the problem? If balance sheets are not prepared with market prices, it will allow companies to arbitrarily assign a price to the illiquid assets it holds. What kind of p ... Read more

I am a little confused. How will removing the mark-to-market accounting rule, an idea that is rapidly gaining traction, help solve the problem? If balance sheets are not prepared with market prices, it will allow companies to arbitrarily assign a price to the illiquid assets it holds. What kind of p ... Read more

Now that both sides of the U.S. House of Representatives cannot agree on Hank Paulson's $700 billion TARP package, the need for an alternative idea is clear. One of the ideas I have heard sounds pretty interesting to me. Essentially, rather than buying $700 billion worth of mortgage-backed securit ... Read more