We’re in for another day of “Tsk!-Tsk!” (wink-wink)

I predict this 5:35 a.m. early hour that the business media will once again today focus on all the bs posturing coming out of D.C. as the politicians take the pulpit to tell the American people they are “outraged – tsk!-tsk!” (wink-wink) by AIG giving out some $165 million in bonuses.

Yeah… right.

Do they think the average Jane and Joe can’t think back not so long ago when the bailout talks were taking place — and the heavy feedback from Main St. at that time was, “But if you give it to them, how can you prevent them from using it for expensive junkets or wasting it on asinine bonuses once again?”

The questions were firmly in place — yet our legislators chose instead of putting firm wording in the inked deal with AIG forbidding such future waste — they’d just plank over taxpayers’ money with a verbal warning of “Now don’t disappoint us.”

Not one legislator on Capitol Hill is really surprised by this.

And if you hear the line coming from Wall Street that “But we have to give these bonuses to our key people in order to keep the best people to help us maneuver out of this terrible meltdown” — don’t believe it.

These “key people” have nowhere else to go. Most of their friends have no jobs. They’re just grateful to still have a fancy title and an office with a view at this point.

Let this be a lesson that you can’t count on anyone else to look after your money — that’s why it’s important you do your own due diligence, so you know exactly when to strike when the iron is hot — and when to back away and prevent getting burned.

Enough about that.

In other news, the Wall St. Journal is reporting today that IBM is in talks to buy Sun Microsystems. This bares keeping an eye on.

And the street will likely be abuzz over the possibility a decision may be coming, possibly as soon as this week, over whether to do some bailing-out of some automakers. (I’ll spare you the diatribe — you already know where I stand on this one.)

A word of caution for those reading the headlines and realizing the Dow has been up five of the last six trading sessions — when you’re watching the volume and movement on your favorite stocks — please-please-please also pay attention to the options dates — as you need to know the “why” behind the reasoning for stock movements. Institutions covering their shorts is not the same as Jane and Joe on Main Street rushing in to get a piece of the pie.

Added to my to “do due diligence on” list today is Darden Restaurants, owner of the Red Lobster, Olive Garden, Capital Grille and LongHorn Steakhouse chains. Once a week I usually go out with “the girls” to the movies and then lunch — and I’ve noticed whenever we’ve gone to the Olive Garden lately, there’s been a wait for a table. When businesses in this depressed economy have people waiting to spend their money — that’s a good sign. Put that together with news this morning that they beat expectations on their quarterly earnings, boosting their shares up 6 percent in after-hours trading — it’s worth rolling up the sleeves to take a closer look at what’s under the hood here, though I’m personally not one for chasing a sudden pop.

Just remember the usual disclaimer: Don’t base any of your investment decisions on anything you read here — do your own due diligence, or at least enough research to pick the right professional to do it for you.


There are no comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: