£325bn Insurance of Toxic Assets or £650k?
During February 2009 RBS have reported loss of £25bn. The biggest loss of any organisation in corporate history in the UK.
As mentioned in previous posts the debt the government has burdened each and every individual is truly astronomical. Not only have they provided taxpayers funds to banks without filly carrying out due diligence instead they are continuing to do so without thoroughly understanding where it has gone wrong.
Injection of £13bn has been provided to RBS in February and the UK taxpayer is insuring the Toxic Assets to sum of £325bn. Alistair Darling highlighted that this is a great deal over the long term
and the taxpayer is likely to gain when RBS becomes profitable. Unfortunately there was no indication of time frame for such an event to take place.
The NEWS has overlooked the real issue and focused on Sir Fred Goodwin s, £650,000 annual pension.
Sir Goodwin's pension is clearly excessive however it helps the government to deflect the public on the true issue of the £325bn toxic assets that the UK taxpayer is acting as insurers for. If £325bn is broken down it equates to £30,000 to every single, man, women and child. It is almost 40% of GDP.
The UK taxpayer are not aware of what the toxic assets are and most importantly the true risk around these assets.
Markets
Dow Jones
Dow Jones Industrial Average is still on a very strong down trend. The stimulus package
has had little affect in bringing confidence into the markets.
The DJ30 first target for the Bears is 6800 and second target is 5015. Before proceeding to theses lows there may be a bullish rally towards the 7900 to 9400 mark after which the down trend is likely to resume and heads towards the 5000 level.
US Stocks
The following stocks have been selected using Elliot Wave Analysis. The stocks have a higher probability , not guarantee, of making gains during the next quarter.
FTSE 100
The FTSE100 is in a down trend and may break out of the lows of the range between 4630 and 3800. The first target for the bears is 3395 and the longer term target is 2778. In order to reach the targets the strong support area around the 3800 mark needs to be broken and retested to ensure that short positions can be taken on the FTSE100 index. If the support holds then there will be a move up to the 4600 level.
UK Stocks
The following stocks are fundamentally strong under the current economic climate and may be a good long term investment.
Please ensure that the you undertake further research of the above mentioned stock before proceeding to invest.
As mentioned in previous posts the debt the government has burdened each and every individual is truly astronomical. Not only have they provided taxpayers funds to banks without filly carrying out due diligence instead they are continuing to do so without thoroughly understanding where it has gone wrong.
Injection of £13bn has been provided to RBS in February and the UK taxpayer is insuring the Toxic Assets to sum of £325bn. Alistair Darling highlighted that this is a great deal over the long term
and the taxpayer is likely to gain when RBS becomes profitable. Unfortunately there was no indication of time frame for such an event to take place.
The NEWS has overlooked the real issue and focused on Sir Fred Goodwin s, £650,000 annual pension.
Sir Goodwin's pension is clearly excessive however it helps the government to deflect the public on the true issue of the £325bn toxic assets that the UK taxpayer is acting as insurers for. If £325bn is broken down it equates to £30,000 to every single, man, women and child. It is almost 40% of GDP.
The UK taxpayer are not aware of what the toxic assets are and most importantly the true risk around these assets.
Markets
Dow Jones
Dow Jones Industrial Average is still on a very strong down trend. The stimulus package
has had little affect in bringing confidence into the markets.
The DJ30 first target for the Bears is 6800 and second target is 5015. Before proceeding to theses lows there may be a bullish rally towards the 7900 to 9400 mark after which the down trend is likely to resume and heads towards the 5000 level.
US Stocks
The following stocks have been selected using Elliot Wave Analysis. The stocks have a higher probability , not guarantee, of making gains during the next quarter.
| Symbol | Name | Close |
| ALZ | ALABAMA PWR SR NT | 23.98 |
| ARST | Arc Sight, Inc. | 8.99 |
| BFZ | BLACKROCK CA MUN INC | 11.61 |
| BIIB | Biogen Idec Inc | 47.69 |
| DRI | DARDEN RESTAURANTS | 26.34 |
| IDCC | InterDigital, Inc. | 29.25 |
| RHT | RED HAT INC | 13.95 |
| TDG | TRANSDIGM GRP INC | 34.86 |
| TIVO | TiVo Inc. | 7.12 |
| TSO | TESORO CORP | 15.37 |
| VAZ | DEL INV ARIZ MUNI FD | 10.06 |
| WEN | WENDYS/ARBY'S GRP | 4.89 |
| WYE | WYETH | 41.14 |
FTSE 100
The FTSE100 is in a down trend and may break out of the lows of the range between 4630 and 3800. The first target for the bears is 3395 and the longer term target is 2778. In order to reach the targets the strong support area around the 3800 mark needs to be broken and retested to ensure that short positions can be taken on the FTSE100 index. If the support holds then there will be a move up to the 4600 level.
UK Stocks
The following stocks are fundamentally strong under the current economic climate and may be a good long term investment.
| Symbol | Name | Close |
| GBO | Globo PLC | 7.75p |
| TIK | Tikit Group PLC | 118p |
| CRYO | Cryo-Save Group N.V | 32.5p |
| NARS | National Accident Repair Services PLC | 107.5p |
Please ensure that the you undertake further research of the above mentioned stock before proceeding to invest.
Labels: Alistair Darling, ALZ ARST, BFZ, BIIB, CRYO, dow jones, DRI, ftse100, GBO, IDCC, NARS, RBS, RHT, sir fred goodwin, TIK
posted by Bull Kicker at
20:54
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