Market Commentary From Monty Guild

Posted at 12:16 PM (CST) by & filed under Guild Investment.

Dear CIGAs,

Mainstream media outlets are devoting more airtime and front page space to the developing banking and financial system crises.  There were two articles this weekend that may be useful.  One article is for those who are interested in the evolution of the housing market’s problems, and another about the banking system’s inability and/or unwillingness to lend.

From the October 5, 2008 NY TIMES:
Pressured to Take More Risk, Fannie Reached Tipping Point

From the October 4, 2008 THE ECONOMIST:
Blocked Pipes

We recommend the Blocked Pipes article as it clearly explains the concerns that we have had for years about the banking system of the world.  After reading the Blocked Pipes article, you can see why we remain pessimistic about a rapid recovery of the world banking system.  We strongly recommend that readers contact us, about the security of the banking institutions where they have their assets.  Our attorneys have carefully analyzed the legal language of many institutions, and we have strong opinions about which banks and which areas within banks provide the most safety for investors.  We will be happy to discuss your situation with you and suggest alternatives for you.

Albeit a little late, it appears that the problems within the global financial system have captured the interest of the general public, not just investors.  Markets are often held captive to fear and greed.  Fear has clarified the public’s attention.  Those who may have had a casual interest in how the world of investing worked before are becoming convinced they need to understand what happened, what is happening, how it might affect them, and what steps if any should they take.

The markets are based on psychology, and understanding the public psyche is important to successful investing.  Since people still rely on the media for much of their information, we believe is valuable to monitor.

Thanks for listening, and please feel free to contact us if we can be of assistance.

Monty Guild and Tony Danaher