Seeking Alpha

Financial Insights

 
View as an RSS Feed
View Financial Insights' Comments BY TICKER:
Latest  |  Highest rated
  • The Fed Putting America In A Hole [View article]
    James,

    I would think M3 could predict inflation better than M2 and M1. If M3 is growing at a rapid pace, that means more people are buying and selling goods, depositing the proceeds into their bank, and the bank is lending the proceeds out and the cycle continues. It could help support velocity of money in predicting inflation. How's my logic?

    Also, with the velocity of money so low, if M2 continues to grow, couldn't that indicate deflation since more people are holding money? I think that the money supply given too much importance when predicting inflation/deflation.
    Sep 19 10:05 AM | Likes Like |Link to Comment
  • The House has passed the No More Solyndras Act, which would curtail a DOE loan guarantee program that ignited a firestorm of controversy after a certain solar manufacturer went belly-up. The bill, passed mostly on party lines, has little chance of clearing the Democrat-controlled Senate, but it highlights the tense political climate the DOE program, which U.S. solar vendors such as First Solar (FSLR) and SunPower (SPWR) depend heavily on, operates under. [View news story]
    Great job Congress! Now pass a No More Congressional Stupidity/Laziness Act, which would force members of congress to work more than 6 months a year (how often do they actually work?), have their pay and benefits based off the median U.S. salary, and limit terms for senators and representatives. That would save the American taxpayers $1 billion a year instantly, untold billions more in increased government efficiency, and reduce headaches for all, due to more commonsense and productive legislation.
    Sep 14 04:17 PM | 6 Likes Like |Link to Comment
  • Complying with tighter fracking regulations on federal lands will cost $253,839 per well, says EOG Resources (EOG), Wyoming and Utah, citing a study from John Dunham & Associates. That's well above the $11,833 that the Bureau of Land Management estimates, and would cost natural gas producers a total of $1.5B-$1.62B a year. [View news story]
    dsr,
    Requiring companies to conduct business in a way that is safe for all involved is not a government mandated allocation of resources, but a protection of citizens. And my support of these regulations does not in anyway mean that I am a socialist, or that I am advocating government control of the economy. There is a place for government in certain aspects of business, namely to protect the consumer and workforce. The "market is god" ideology that you are in support of, is inherently flawed.

    Can you elaborate on your comment "as evidenced by the astounding prosperity and vibrant middle class this country created when it was free"? The vibrant middle class that you reference was created during periods of historically high income tax rates and government regulation.
    Sep 12 01:25 PM | 1 Like Like |Link to Comment
  • Baltimore County Executive Kevin Kamenetz hopes to borrow $255M to help with the county's underfunded pension system. His plan is to borrow the money for 30 years at 4.25-4.5% and put the money in investments that earn more. Question: If there is an investment guaranteed to earn more than 4.5%, wouldn't the pension bond buyers put their money in it instead? [View news story]
    Great link Amadon. It brings up some excellent points. Another reason why domestic growth will continue to decline, is that there is low population growth.

    Another thing that people do not seem to comprehend is that perpetual growth is not possible, especially when growth is a function of finite resources. The next 20 years will not be like the last 20. That is for sure.
    Sep 12 12:02 PM | 1 Like Like |Link to Comment
  • Baltimore County Executive Kevin Kamenetz hopes to borrow $255M to help with the county's underfunded pension system. His plan is to borrow the money for 30 years at 4.25-4.5% and put the money in investments that earn more. Question: If there is an investment guaranteed to earn more than 4.5%, wouldn't the pension bond buyers put their money in it instead? [View news story]
    Municipal bonds are exempt from federal income tax. So depending on the tax rate, the 4.25% could be equivalent to a much higher rate of return. Since high income individuals are the ones who benefit most from investing in munis, the actual return on these bonds is probably closer to 6% or so. That is why this would work.
    Sep 12 11:28 AM | Likes Like |Link to Comment
  • General Motors (GM) loses a staggering $49K on each Chevrolet Volt it builds, according to numbers dug out by Reuters. Though the loss per vehicle could shrink if the plug-in hybrid program is built to scale, the automaker faces an uphill battle with rivals seeing better success with their own electric and hybrid vehicles. (Related: Tesla firing on all cylinders?[View news story]
    Haha great comment david.
    Sep 10 11:43 AM | 1 Like Like |Link to Comment
  • Complying with tighter fracking regulations on federal lands will cost $253,839 per well, says EOG Resources (EOG), Wyoming and Utah, citing a study from John Dunham & Associates. That's well above the $11,833 that the Bureau of Land Management estimates, and would cost natural gas producers a total of $1.5B-$1.62B a year. [View news story]
    Machiavelli,

    I understand supply and demand and economics just fine, but thanks for the very basic and simple lesson.

    You completely missed the point of my comment. The point was that if fracking cannot be done in a safe manner for all involved, then it shouldn't be done. That is where the $100 million came from.

    Seriously, learn how to comprehend simple english statements and comments from other points of view, instead of twisting the meaning to match your own outlook. It really is very simple. Have a great week!
    Sep 10 11:34 AM | 1 Like Like |Link to Comment
  • Complying with tighter fracking regulations on federal lands will cost $253,839 per well, says EOG Resources (EOG), Wyoming and Utah, citing a study from John Dunham & Associates. That's well above the $11,833 that the Bureau of Land Management estimates, and would cost natural gas producers a total of $1.5B-$1.62B a year. [View news story]
    DSR,
    Your comment is illogical and nonsensical. You have no idea what my views are, or how I think. The added costs aren't added specifically by the regulations, and no where did I say that more money spent by the nat gas industry would lead to more lives or money saved. Tighter restriction on fracking and disposal of the chemicals used does save lives and money, so if that costs a little extra for the nat gas companies, oh well. I wish they could guarantee everything 100% without spending more money, but it is the nature of business to do the least for the most profit. That is why government is there, to protect the common good.

    No one knows what the actual costs will be, and it would be prudent to wait and see what the total bill will come out to. More than likely this is just a ploy by the nat gas industry to try and get the regulations removed. To be honest, I wouldn't care if it took $100 million per well to make sure that the fracking was safe for the community in the vicinity of each well. It is bad for everybody when greed outweighs the common good.
    Sep 10 12:51 AM | Likes Like |Link to Comment
  • Complying with tighter fracking regulations on federal lands will cost $253,839 per well, says EOG Resources (EOG), Wyoming and Utah, citing a study from John Dunham & Associates. That's well above the $11,833 that the Bureau of Land Management estimates, and would cost natural gas producers a total of $1.5B-$1.62B a year. [View news story]
    What a narrow-sighted comment dsr. These tighter regulations will save billions in future healthcare costs to the country as a whole, and will save these companies from at least some future litigation. I would put the health of citizens over company profits any day.
    Sep 9 08:25 PM | 2 Likes Like |Link to Comment
  • Genworth Financial: The Opportunity Of A Lifetime [View article]
    Hammer,

    AOCI is where companies put unrealized gains and losses on certian types of securities and pension assets. It is a form of equity. They are selling 40% interest in australia MI. I think they are selling a minority stake to lower their risk to real estate, and to build up more cash and capital. I am really busy with work and school, but I will try to write an article pertaining to the suggestions in one of your earlier posts..
    Sep 2 01:22 PM | 1 Like Like |Link to Comment
  • Buying Opportunity In Genworth - And How To Play It [View article]
    Mortgage insurance companies are all volatile. Even though a tiny percentage of Genworth's assets are tied up in mortgage insurance, the market still treats it as if its primary business is MI.

    The high debt level is from the 2007-2009 financial crisis.

    As far as knowing exactly why the stock is so volatile, I have no answers. Why is Amazon trading on air? How did PCLN stay so high for so long? How has Sears returned 80% so far YTD? The market is not a creature of sense.

    How could Australia be at the beginning of a housing bust? Low unemployment and a growing economy are never signs of a housing bust.

    Genworth is a good buy at these levels, but I think the market is topping so I would wait to buy. I think SPY will test 1300 or lower before going up further.
    Aug 30 10:27 PM | Likes Like |Link to Comment
  • More Reasons To Buy Bank Of America Shares Now [View article]
    DP,

    Great comment! Substituting "willing" with "able" would have been prudent on my part. There was no disrespect or ill will intended by the comment, and I am glad that you took it that way.
    Aug 30 03:26 PM | 1 Like Like |Link to Comment
  • More Reasons To Buy Bank Of America Shares Now [View article]
    If you read the financial statements everything is there in black and white. All derivatives and valuation processes are explained for all securities. Getting through the 150+ pages is an effort, but it is worth it if actual knowledge is your goal. People have a tendency to stigmatize things that they don't understand, especially when they aren't willing to put the effort in to understand the "thing" in question.
    Aug 30 01:56 PM | 5 Likes Like |Link to Comment
  • More Reasons To Buy Bank Of America Shares Now [View article]
    RS,

    You should use tangible book value for your P/B ratio. BAC has 80 billion or so in goodwill on the books, which skews the standard ratio. Enjoyed the article, thanks.
    Aug 30 10:18 AM | Likes Like |Link to Comment
  • The Fed Putting America In A Hole [View article]
    James,
    Thanks for the informative article!

    Any thoughts on the $1.5 trillion in bank deposits at the Fed? Historically, this number has been a small fraction of the current number. IMO if the Fed wanted banks to start lending, it would stop paying interest on deposits and/or charge a fee for all deposits over a certain threshold. Interested to hear your thoughts.
    Aug 28 01:16 PM | 1 Like Like |Link to Comment
COMMENTS STATS
945 Comments
839 Likes