Diamonds and Dogs
Zombie StocksZombie Stocks Dead in the Water
A year ago, who would have thought that the US government would have a pay czar controlling the pay of some of America's formerly great companies? Kenneth Feinberg, appointed by the Treasury Department, is the pay czar in charge of letting the lovable loser firms that have taken government aide, know what their top people can be paid. The stocks of these companies (think Citigroup (C), AIG, and BankAmerica (BAC), are done, over and out. They may rally here and there with the market, but for the most part, these companies will not be able to attract the best and the brightest as long as Uncle Sam is controlling the payroll and they will be crushed by competition like Goldman et al. Wall Street is all about the survival of the fittest and the fittest will stay clear of the zombie government owned firms. Maybe so should you.