The Schism Continues

I didn’t realize when I posted Calling Another Top that we would shortly head into a few consecutive bloody weeks. But I guess I continue to underestimate how much people really have faced the fact that we are entering a prolonged period of a credit cycle.
Thankfully…I believe the technology side of the economy is going to continue to perform and will keep us booming ahead.

There was great news after-hours today when Microsoft beat earnings, only a day after investing in Facebook at a $15B valuation. Both of these things are signs of a strong and agressive tech sector. Not to mention the fact that lifecasting on www.justin.tv and other recent developments show that innovation is continuing at a rapid pace.

I am sure all of you saw the Merrill Lynch write down yesterday (biggest in history) and there was another article in the Journal today about CDO’s and how they are to blame…yada yada. I feel like that horse is so dead and beaten that everyone can see it rotting. But then again, I thought everyone could see the house of cards last year.

I think we may start to see some positive movement again in the equity markets (and my PA will for sure with MSFT and JMBA, who also beat revenue estimates after hours…plus NTDOY raised their forecast again). But I am not sure that I am gonna cover my financial shorts. Still more ugly to come. And people don’t want to face it.

P.S. Bank of America apparently is shutting down their I-banking group or scaling it back significantly. More to come? I don’t see how there can’t be. No liquidity – no balance sheets – no pitches – no deals – no fees – no bankers.

Oh, and check out www.twitter.com if you haven’t yet. People are obsessed.

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