We met with our Merrill Lynch adviser this morning and were left with the distinct impression that capitalism is indeed eating itself. Our portfolio is worth less than what we put in to it and we’re doing “pretty good”. The same guys who have been saying for as long as I have been listening that “business knows best” are begging the government, who can’t balance a checkbook, for help. The receptionist, who used to greet us here, has been laid off because of the restructuring that Bank of America, who now owns Merrill, has started. And the Wall Street Journal I glanced at in ML’s lobby had an article about New York’s Attorney General, Mario Cuomo’s son, shaming Merrill’s CEO into not taking his ten million dollar bonus this year.
“Does the that fact that big business is begging the government for help indicate that things are really worse than they seem now?”, I asked. Our guy agreed that that was the case. We pushed ahead. Are there any buying opportunities out there now that just about everything has tanked? Maybe but even with their commission danging there they had no solid recommendations. “Do you feel that the Dow could drop much further?”. Our guy thought we would see a twenty to twenty five percent drop before things turned around.
We sold a few things at a loss so we could deduct it from our taxable income and called it a day at the races.
1 Comment