I feel terrible for the paper losses I have caused some of you in FMD. But – for those who can afford the risk – it seems well worth hanging onto. I already have an awful lot, but could not resist buying a little more yesterday. No matter what, kids will still go to college and many of them may still need loans. FMD has really good underwriting expertise in this field. What’s more, student loan obligations survive bankruptcy – and most of FMD loans are cosigned by parents. My guru writes:

There is very real potential that FMD will not be able to get a 4th quarter deal done on reasonable terms. What the bears don’t mention though, is that the financial markets are seized up, and that this is not an FMD-specific problem. Almost no Asset-Backed Securities deals are getting done right now (across many asset classes) – the terms being offered are ludicrous.

If they can get a deal done on acceptable terms in December (acceptable definition open to interpretation), this would be a very, very, very positive sign. If they can’t get it done (and this is likely), then we’ll have to sit on our hands for a while and see how the markets firm up. The good news is that FMD has ample cash to sit idle for a while.

Personally, I feel like I’ve been ridden hard and put away wet – but this too shall pass.


Each Borealis share represents one Roche Bay share (because Borealis is sliced into 5 million shares and happens to own slightly more than 5 million Roche Bay shares). The RCHBF shares, albeit ultra-thinly traded, are currently $9 bid, $12 asked. (Which means someone is will to pay $9 to buy shares and someone else would sell a few at $12.) Meanwhile, BOREF is $6.50 bid, $7.25 asked. (Meaning that if you paid $7.25 to buy a share of BOREF, you would effectively get a $9 share of Roche Bay and get the rest of the company, like WheelTug™, for free.)

Roche Bay’s development partner, AXI, just announced it had found $65 million in financing.  Inch by inch, we move through the frozen tundra toward a warm, sunny retirement.


Jim Reed:  “For your quote list (from . . . ‘I have to say this is one of the most arrogant, incompetent  administrations I’ve ever seen or ever read about. They have failed the country.’ – Republican Sen. Chuck Hagel, speaking before the Council on Foreign Relations in New York, November 28, 2007

My thanks also to Randy Wolman, who shared with me a whole lot of his own favorite quotes, several of which I’ve lifted for rotation in the box at left.  E.g.:

“The press [should be] a watchdog. Not an attack dog. Not a lapdog. A watchdog. Now, a watchdog can’t be right all the time. He doesn’t bark only when he sees or smells something that’s dangerous. A good watchdog barks at things that are suspicious.” – Dan Rather

“Keep the company of those who seek the truth, and run from those who have found it.” – Vaclav Havel


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