What happened this week:

  • Panic continues at the credit markets
  • Moody’s said issuers are “rating shopping”
  • Earning season is not as great as before (not a surprise to this blog readers)
  • I wrote a page about my investment principles
  • Lawyers eye raters, underwriters in subprime cases
  • “The dollar is the responsibility of the Treasury.”
    – Helicopter Ben, Just now in response to a question

    • Ambiguous Treasury and Federal Reserve Dollar Relations. In addition to ambiguous policy objectives and non-transparent intervention practices, institutional relations between the Treasury and the Federal Reserve regarding foreign exchange responsibilities are unclear and contradictory in a number of ways. In short, these relations are not transparent. This raises a number of questions about a subordinate role of Federal Reserve intervention activity as well as the obscure, non-transparent (and legally questionable) way in which Treasury foreign exchange operations can be financed.The Division of Responsibility is Unclear and Ambiguous.
  • Google finally got in trouble
  • Bad earnings from Caterpillar

What to watch next week:

  • The action heats up, I don’t know from where the next surprise will come, but I have no doubt that it will. The rule sais “There is never just one cockroach”
  • Most important is credit markets, stock market is not that important