Subscribe



Nov 24, 2008 - Issue #138



Reaffirmation



Reaffirmation. Specifically, reaffirmation of certain specified obligations in bankruptcy.

CNBC guests of the opinion that customers won't buy cars from a company in bankruptcy because the warranty contracts won't be honored are in error.

In bankruptcy proceedings, all existing obligations are first cancelled but then those obligations that the company wishes to honor are 'reaffirmed'.

Therefore, what emerges is a company that keeps only those obligations it wishes to honor. The rest are dumped. Life goes on.

It is not the obligation, nor desire, of the taxpayers to bailout the United Auto Workers union with their jobs bank, unaffordable health plans that no one else has, and Democrat politicians in their hip pockets.

Auto manufacturers in 'Detroit South', Toyota, Nissan, and Honda, are thriving and plan expansions. The only question is whether GM, Chrysler, and Ford will be allowed to emerge as 'lean, mean, fighting machines', or become history.

Heads Up

During the next two weeks, the following Dow components report earnings. Keep a sharp eye out for possible price swings leading up to 'earnings day' (Subject to revision):

11/24 HPQ.

Dow score card for the week ending 11/21/08.

DJ-30: 8046.42 -450.89 -5.31%. The Real World (arithmetical) DJ-30: 33.68 -1.88 -5.31%.

UP: 5, Down: 25.

Trends (weekly charts): This is the subjective part.

Rising (Generally Higher Highs/Higher Lows) 0 (n/c) 0%:

None.

Consolidating (Generally Lower Highs/Higher Lows) 10 (-5) 33%:

+*AXP, CAT, CVX, +*DIS, +*GM, +*HPQ, PG, VZ, WMT, XOM.

Declining (Generally Lower Highs/Lower Lows) 20 (+5) 67%:

-*AA, BA, BAC, C, DD, GE, -*HD, IBM, INTC, JNJ, -*JPM, KFT, -*KO, -*MCD, -*MMM, -*MRK, MSFT, PFE, -*T, -*UTX.

+/- denotes change of direction.

* denotes change of category.





Comments? Ideas? Feedback? Let me have it, right between the eyes! I'd love to hear from you. Just reply to this zine and tell me what you think!

Two Paths to Financial Independence

1. Own your own successful business.

2. Own a piece of someone else's successful business.

... Billionaire J. Paul Getty, founder of Getty Oil.

Attraction Marketing

RadioActiveTrading

Every business needs to advertise...

Building on a Budget

“I’d rather have 1 percent of 100 people’s efforts, than 100% of my own.” ... J. Paul Getty, founder of Getty Oil.

Expanding Your Business