Strategy Lab Journal Update
Adding a few short positions and one long. Also, exploring the upcoming problems for New York…it could be ugly.
For some time I have been writing about the games being played by many of the public companies within the financial sector. Their problems are causing the destruction of wealth on a global scale, amplified by years of the unrestrained use of credit.
I suppose that it is no wonder then that the top selling financial books these days are by authors Dave Ramsey, Suze Orman and Larry Winget. All have one thing in common: They are preaching/teaching hopeful fixes for a lifestyle gone-wild that left in its wake a long trail of self-made credit nightmares.
The credit crunch is far from over, and some say we are only in the second inning. Even as the fundamentals continue to erode for public companies within the financial sector, it’s a much greater problem that is again forming a gigantic sinkhole under the surface of our economy that has me worried.
I have been mulling over this thesis for the past few weeks as I have been researching New York’s financial woes. Information was difficult to come by until this week. But an announcement by New York City Mayor Bloomberg has helped to confirm my worries…
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