Another interesting historical article from 2008. Back when oil was over $100 a barrel, and the markets were crashing hard. Before interest rates dropped to the 1% range, here we have me discussing the eventual demise of Nortel (my former employer).
We always live in “very interesting” times, which are getting more interesting every day.
With the U.S. government’s bail-out plans going on hold and the markets not appreciating that (if you view a 700 point drop as “negative feedback”), I think we are most assuredly living in “very interesting” times.
Eerily Similar Commentaries
Now, I am not saying that this is time to panic, but I remember in 2000 when folks started wondering at Nortel whether the company could actually “collapse” from it’s $120 per share stock price I heard statements like:
- The government wouldn’t let it happen, it would kill the TSX and the Canadian Economy.
- If Nortel goes down, a lot of people are going to be hurting
- Nortel’s fundamentals are sound
Have you heard those same statements about the U.S. financial system? No, I am not saying this is in any way similar, I am merely pointing out that no one knows where this is going to go, and what the final fallout might be.
OMG I Almost PMP’ed
OK, that’s for my younger readers, for my reaction when I heard that Congress didn’t pass the “bailout” bill.Â Speaking as someone with no income now, I am curious to see what happens because if this causes an American recession or, worse, depression (anything is possible, I am not saying this is going to happen, simply I hope it doesn’t), finding a job in Canada is going to get a lot more interesting.
Is it time to buy into equities? Don’t ask me! You should buy when you think the bottom has been hit, but I have no idea what “bottom” is anymore.
Oil is Below $100 a Barrel
Remember two weeks ago when we were worried about Oil prices? Oil is below $100 a barrel, but I guess it’s kind of hard to notice that the hurricane is over if your house is on fire.
Now is the time to Panic?
No, but watching the financial pundits is more interesting than listening to the Election pundits, that is for sure.Â In Canada Jack Layton is portraying the NDP as the official opposition to the Tories, if that happened, I would truly agree that we are living in interesting times, and the Devil is going to put in central heating because it is getting cold in hell.