It’s Not Easy Being Green

It’s been said-though I’ve never tried it-that if you put a frog in a pan and heat the water gradually, he won’t jump out.

Is that what’s happening with the “Stress Test” results? We’ve been hearing leaks and counter-leaks for days. First four banks need help. Then about ten. Bank of America needs $5 billion. Make that ten. What’s going on?

My guess is that the government is feeding out trial balloons, in order to test what kind of response they’ll get. Hey, it’s a major decision to dilute Citi shareholders by half, just because some obscure ratio that no one heard of before will fall if unemployment reaches 10% and stays there a year. For that we want to tick off the Saudi royal family? Those guys carry swords!

So the leaks keep coming, and the temperature of the water keeps rising. By anchoring investor expectations, Treasury is trying to keep them from jumping.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

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By | 2014-09-04T20:45:45+00:00 May 6th, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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