I know that it's difficult to believe this week of parsing the utterances of politicians, that anything gets accomplished by the rest of the world, but Wells Fargo is on track to snap up the shares of Wachovia.
Now let me check my Coulda Woulda Index. I seriously considered buy Wells Fargo at about 35 bucks a share last week. The Spousal Unit flexed and told me to slow down, and I agreed. I opened up a new ETrade account anyway but I have yet to transfer any of my cash over to it. Putting my money where my mouth is, I intend to do a quick two month investment cycle and cash in for my Christmas shopping and year end bills. So now let me check what I woulda got for WFC. Better than two bucks a share. (Sigh)
I am not a day trader.
And still, I was fairly confident that I was going to buy that big hunking BRK.B. Mr. Jones gave me the thumbs up. But it was running contrarian for a couple days. When the market bounced up on Tuesday, it went down. And now it's up. My buy price was $4500. I would have made about 160 bucks. Feh.
I am not a day trader.
Like most Americans, I still can't figure out everything that's going on. When it comes to figuring the impact of derivatives and swaps in the market, there are just a whole lot of that dynamic I am still unable to connect. It's not that I can't keep my eye on any investment ball, it's rather that I'm not sure what to keep in my peripheral vision other than stocks related in the industry. So for example I know for a fact that now is a great time to drop some cash on GE and Shaw Group and maybe a Toshiba ADR for their Westinghouse unit. Why? Because India is going nuclear in a big way, and we're going to help. Buffett bought GE and that's an obvious clue.
But Wells Fargo decided to buy Wachovia like a cheap whore. Wells could probably finance the entire deal just with the money it got from depositors fleeing Washington Mutual over the past few weeks. And Citi thought, like Paul McCartney 'the girl is mine'. Apparently the FDIC may have something to say about it, but i think they should butt out. Let a bidding war break out. This is how we settle things out here in financial land. Let the shareholders decide, not the voter. Let the shareholders take the risk, not the taxpayers. Save the FDIC for another bank in trouble - Citi, put up or shut up.
People out here with cash are thinking long and hard about how much and where to invest. We are second guessing ourselves and coming up with some informed decisions. That's how this country works. Watch it.
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