Dan Walker - Seeking Alpha 'Dan Walker' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/dan-walker On Valuing Toxic Assets and AIG Bonuses http://seekingalpha.com/article/126138-on-valuing-toxic-assets-and-aig-bonuses?source=feed 126138 Today we will deal with two diverse but intertwined topics, both of which annoy me greatly as I read the headlines.

The current financial 'situation' appears tailor-made for the media; it impacts everyone, immediately commands attention, and is complex enough to offer endless avenues for obfuscation.]]> Mon, 16 Mar 2009 09:02:56 -0400 Dan Walker Dan Walker submits:
Today we will deal with two diverse but intertwined topics, both of which annoy me greatly as I read the headlines.

The current financial 'situation' appears tailor-made for the media; it impacts everyone, immediately commands attention, and is complex enough to offer endless avenues for obfuscation.

Complete Story »]]> AIG Dan Walker Bad Bank, Or Bad Plan? http://seekingalpha.com/article/117299-bad-bank-or-bad-plan?source=feed 117299 I feel like Tommy Jones in Batman Forever about the 'Bad Bank' plan currently in vogue. My original proposition to recapitalize the banks here on SA back in September 08 included forcing a mark to market of dubious assets and a make-up of the losses. At that time, I felt that angry stockholders would dispose of any management types who had made bad decisions and over-rewarded themselves to the detriment of the enterprise. I have since seen (and been reminded) that that stance was pure folly and that the institutional stockholders who own most of the stocks are in this thicker than thieves and are not inclined to force any management turnover.

Congress simply voted to blow a boatload of borrowed cash, and Treasury first wanted to buy bad assets and then saw the light and decided to recapitalize the banks. When Treasury finally acted, they only did it halfway - they did not force a mark to market, and did not provide enough equity to overcome the problem.

]]> Thu, 29 Jan 2009 07:35:55 -0500 Dan Walker Dan Walker submits:

I feel like Tommy Jones in Batman Forever about the 'Bad Bank' plan currently in vogue. My original proposition to recapitalize the banks here on SA back in September 08 included forcing a mark to market of dubious assets and a make-up of the losses. At that time, I felt that angry stockholders would dispose of any management types who had made bad decisions and over-rewarded themselves to the detriment of the enterprise. I have since seen (and been reminded) that that stance was pure folly and that the institutional stockholders who own most of the stocks are in this thicker than thieves and are not inclined to force any management turnover.

Congress simply voted to blow a boatload of borrowed cash, and Treasury first wanted to buy bad assets and then saw the light and decided to recapitalize the banks. When Treasury finally acted, they only did it halfway - they did not force a mark to market, and did not provide enough equity to overcome the problem.


Complete Story »]]> BAC C WFC Dan Walker Shorting Ban: Thinning of the Herd, or Just Plain BS? http://seekingalpha.com/article/98159-shorting-ban-thinning-of-the-herd-or-just-plain-bs?source=feed 98159 I have tended to pay attention any time this year the Proshares Ultrashort Financials (SKF) falls under 100. It has been a "Take it to the bank" (pardon the pun) bet anytime we have sunk below that price level. The May-July market decline drove SKF from a low of 89.47 on May 2nd to a high of 211.75 on July 15th. The early September run took the ETF from 96.40 to 154.77. The largest decline in NYSE history only took it from 96.10 to 119.99.

At first glance, you may say that this is the effect of stifling short selling. However, the fund stated last week that while it would create no new shares, the existing shares will still trade. Scarcity should have been magnified in fund price during a genuine panic over financial equities.

]]> Thu, 02 Oct 2008 04:41:45 -0400 Dan Walker Dan Walker submits:

I have tended to pay attention any time this year the Proshares Ultrashort Financials (SKF) falls under 100. It has been a "Take it to the bank" (pardon the pun) bet anytime we have sunk below that price level. The May-July market decline drove SKF from a low of 89.47 on May 2nd to a high of 211.75 on July 15th. The early September run took the ETF from 96.40 to 154.77. The largest decline in NYSE history only took it from 96.10 to 119.99.

At first glance, you may say that this is the effect of stifling short selling. However, the fund stated last week that while it would create no new shares, the existing shares will still trade. Scarcity should have been magnified in fund price during a genuine panic over financial equities.


Complete Story »]]> SKF Dan Walker An Alternative Bailout Proposal http://seekingalpha.com/article/97144-an-alternative-bailout-proposal?source=feed 97144 A large number of critical thinkers here have weighed in on how bad an idea it is to give the ex-chairman of Goldman Sachs (now Treasury Secretary) $700 billion to bury in securities which the creators of the problem refer to as 'toxic waste'.

In response to protests of how bad an idea this this, many of you have responded with 'Do you have an alternative plan?'

]]> Wed, 24 Sep 2008 15:56:26 -0400 Dan Walker Dan Walker submits:

A large number of critical thinkers here have weighed in on how bad an idea it is to give the ex-chairman of Goldman Sachs (now Treasury Secretary) $700 billion to bury in securities which the creators of the problem refer to as 'toxic waste'.

In response to protests of how bad an idea this this, many of you have responded with 'Do you have an alternative plan?'


Complete Story »]]> IAI IYF XLF Dan Walker