Dan Schmeidler

While Citigroup Jumps on John Paulson's Investment, AIG Jumps on Anything

This is nothing more but a bubble formation in equities. And yes, (from a Fed's perspective) this sort of bubble in equities ain't so bad, considering all these other places where inflation could be creeping up. Since the government is backstopping/owning these equities (as opposed to NASDAQ2000) we are likely going to see this process (and this type of action in equities) prolonged. And (as (TraderMark points out) the rise in these equities is signaling that the Feds could potentially manage to keep their stranglehold on the markets for a very long time.

The Lunacy Surrounding AIG's Stock Price

Good article. Irrelevant of the fact that the government (more or less) owns these entities, the short covering (in FNE, FRE, AIG, C, etc.) is generating additional tax revenues (when received) for next year. And speaking of anniversary, for securities held for less than 1 year, the revenues, when received, will be even higher. So I don't really see why the Feds should regard this process as mockery, or stop the trading of these companies and/or delist them.

In addition (and aside from insignificant tax revenues), the price move of these equities is signaling (a perception) that equities owned by the Feds/Government can appreciate in capital. This is a notion that would have been unfathomable a few years ago. But these are different times, and for right now, ailing/defunct government entities are the stocks to own. This type of action in equities is a clear indication of a bubble formation (it's not the first, - nor will it be the last), and the Feds are unlikely to stop this process since they the direct beneficiary of this kind of appreciation. In addition, the Feds might regard this type of action (in equities) as inflationary side effects to their monetary policies. And they will likely tend to keep it contained to equities. I figure, we will have a lot more of this type of action coming in the next few weeks and months.

'The Worst Is Over for Financials' - Really?

I would hardly call this an article. But rather a short composition of various head-liners. Shame on you, Lazy-Grace (my nickname for you). Please don't ruin my "Seeking Alpha" experience with worthless articles.