David Merkel is an investment professional, and like every investment professional, he makes mistakes. David encourages you to do your own independent "due diligence" on any idea that he talks about, because he could be wrong. Nothing written here, at RealMoney, Wall Street All-Stars, or anywhere else David may write is an invitation to buy or sell any particular security; at most, David is handing out educated guesses as to what the markets may do. David is fond of saying, "The markets always find a new way to make a fool out of you," and so he encourages caution in investing. Risk control wins the game in the long run, not bold moves. Even the best strategies of the past fail, sometimes spectacularly, when you least expect it. David is not immune to that, so please understand that any past success of his will be probably be followed by failures. Also, though David runs Aleph Investments, LLC, this blog is not a part of that business. This blog exists to educate investors, and give something back. It is not intended as advertisement for Aleph Investments; David is not soliciting business through it. When David, or a client of David's has an interest in a security mentioned, full disclosure will be given, as has been past practice for all that David does on the web. Disclosure is the breakfast of champions. Additionally, David may occasionally write about accounting, actuarial, insurance, and tax topics, but nothing written here, at RealMoney, or anywhere else is meant to be formal "advice" in those areas. Consult a reputable professional in those areas to get personal, tailored advice that meets the specialized needs that David can have no knowledge of.
What ere they doing to RAMR? They meet expectations increase revenues and then halve the stock! I bought a smidge today anyway.
Regarding the FED, your view is probably exactly what they will do but that does not make it the correct thing to do or the wise thing to do.
Consider: The FED’s role is to support the business economy as well as control inflation. ( Yes they are opposite, but that is still their directive.)
Point, realize a small correction now could probably avert the necessity of a larger correction later, even possibly a full scale bailout. Would it not be better to cut rates .25% now versus the necessity of a .50% or a .75% cut later or even worse. Making the cut later after many more Billions $ go up in smoke is ludicrous as well as wastefull.
Although the problem is now Bernake’s, that is only because Greenspan kept the easy money flowing too long instead of gradually tightening. But by waiting longer with this problem Bernake will necessitate even more accomodating later. Late reactions are always greater than early action, this is true in sailing boats, flying airplanes and managing business as well as managing the economy of a country.