Thursday, September 22, 2011

Markets tank after Fed action because of poor leadership, debt, and demographic winter; why has ING stock collapsed?

The Fed’s swap of short-term bills is, in itself, pretty much a non-event. What brings to mind NBC’s series is its statements that we are likely to be stuck in doldrums for a long time.

CNBC has the best analysis, here.  "Investors are dumping everything."

The Fed has its own benign explanation, here

David Gergen on CNN has it right, there is no leadership, anywhere.  Our debt commission will deliver its turkey this fall, and Congress is again threatening another shutdown.

And Europe seems unable to control its debt crisis, partly—perhaps largely—because of its welfare state policies in the past combines with today’s demographic winter. We have lived beyond our means. 

It’s interesting that the Fed talks in terms of getting banks – and people—to take more risks.  Apathy is turning into the biggest of all sins.  Psychiatrists know that.

My favorite XOM is down a bit (below 70) with lower crude prices, but this has happened before.  It’s always come back.

ING is horrible – at 6.09.  I depend on ING for my pension, although I think a spinoff of US operations into a separate finance company (centered around Aetna and ReliaStar) would be better for employees and retirees  and investors.    Analysts, however, speak well of ING, here. I sold what I had as a former employee in 2003 at 16, and it sounds good that I did.  

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