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John M. Mason

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  • Obama To G-20: Get Your Act In Order! [View article]
    Didn't take your comment as demeaning.

    No foul!
    Nov 13, 2014. 02:40 PM | Likes Like |Link to Comment
  • The Federal Reserve: A Scenario For Raising Short-Term Interest Rates [View article]
    All I meant was that as the Fed reduces the size of its balance sheet, this will reduce the supply of funds in the money market and this should put upward pressure on short-term interest rates.

    I have no problem with your substituting "unprecedented" for "extreme" and the rest of your comment.


    Nov 3, 2014. 08:25 AM | 2 Likes Like |Link to Comment
  • The Federal Reserve: A Scenario For Raising Short-Term Interest Rates [View article]
    Lawrence J. Kramer:
    It was not clear in my paragraph that I was referring to the supply of funds to the money markets and not the supply of real output, whereas I discussed the demand pressure on the money markets coming from increasing real growth of the economy. Hope this helps...

    Sorry for the lack of clarity.
    Nov 3, 2014. 08:05 AM | 1 Like Like |Link to Comment
  • Expectations Of Economic Growth: How Long Can The Expansion Go On And What Will It Look Like [View article]
    So you are saying that we are living in the longest period of economic expansion in US history.
    We are very lucky!
    Oct 2, 2014. 04:32 PM | Likes Like |Link to Comment
  • When Will Interest Rates Rise And What Will Cause Them To Rise? [View article]
    The market for five year Treasuries tend to be more liquid than the ten year market and the twenty year Treasury market tens to be a lot less liquid than either of the other two.
    Hope this answers your question.
    Sep 24, 2014. 07:56 PM | Likes Like |Link to Comment
  • When Will Interest Rates Rise And What Will Cause Them To Rise? [View article]
    Because in 09/2012, lots and lots of risk averse money was leaving Europe during their financial crisis seeking a "safe haven" to invest in. During this time the 5-year Treasury Inflation Protected Securities were producing a negative yield. During that September the 5-year TIPS was trading around -1.6 percent. This made 5 year "inflationary expectations" at that time about +2.2 percent.

    Most of that risk averse money has returned to Europe and we find that the 5-year TIPS are now yielding around +0.3 percent with "inflationary expectations" about +1.5 percent.

    As the Fed has been observing, "inflationary expectations" have fallen over the past couple of years.

    Most of the change in interest rates was due to the inflow and outflow of foreign funds to the United States

    Sep 24, 2014. 07:23 PM | 1 Like Like |Link to Comment
  • European Central Bank Tries To Put Money In Banking System, But The Banks Don't Want It... Now [View article]
    My comment in the part you quoted...
    Mr. Drag hi "is not convinced...that quantitative easing actually works...."'

    I have written continuously that I do not believe quantitative easing has worked in stimulating economic growth.

    I don't see where you got your idea I thought QE has worked.
    Sep 21, 2014. 05:08 PM | Likes Like |Link to Comment
  • Looking At The Federal Reserve From The Perspective Of A Hedge Fund [View article]
    A "classic" case in economic history was George Soros betting against the British pound and Bank of England policy.

    Another example of hedge funds taking advantage of Federal Reserve policy, using borrowing from commercial banks at very cheap rates created in quantitative easing era to buy homes in foreclosure at reduced prices, turning them into rental units and then created and issued a new security where interest payments are supported by rental payments. Bank loans showed up as commercial loans and not as mortgages. I have written about this in past posts.

    And, there are many other examples in this "recovery" where hedge funds and private equity funds have benefited from the "incentives" created by the Fed. I have written on several of these situations in previous posts.
    Sep 8, 2014. 12:36 PM | 1 Like Like |Link to Comment
  • Number Of Banks Continues To Shrink: Banks With At Least $1.0 Billion In Assets Control 92 Percent Of Assets In Commercial Banking System [View article]
    The point on regulatory costs is well taken. I did mention that the "smaller" banks, up to $1.0 billion in asset size would face "cost pressures that were unimaginable a relatively short time ago."

    I was thinking about regulatory costs in this statement as well but did not expand on them because of space limitations.

    Thanks to both Luciom and Tom Bergerson for pointing this out.

    Aug 30, 2014. 03:06 PM | Likes Like |Link to Comment
  • The Future Of Banking... Once Again [View article]
    Bret Maverick, on hearing the statement "You can fool some of the people all of the time and all of the people some of the time..." replied..."Those are pretty good odds!"

    Aug 11, 2014. 05:01 PM | 1 Like Like |Link to Comment
  • European Disinflation Continues [View article]
    Sorry. The decimal point got dropped!
    Jul 31, 2014. 11:49 AM | Likes Like |Link to Comment
  • Second Half Economic Outlook: Should I Change My Forecast? Part II [View article]
    Funny, many others have commented on how pessimistic I am...and have been over the past five years.
    Jul 18, 2014. 07:33 AM | 1 Like Like |Link to Comment
  • Mr. Nadella Makes His First Major Move At Microsoft [View article]
    Tell that to Mr. Ballmer! Maybe that's why he is not CEO anymore.
    Jul 17, 2014. 03:00 PM | 2 Likes Like |Link to Comment
  • Dilemma Of The European Central Bank: Can It Do Anything To Stop Deflation? [View article]
    Jun 4, 2014. 11:14 AM | Likes Like |Link to Comment
  • The Returns From Italy [View article]

    It it highly ironic that one could look to Italy as a possible source of strength for the European reform...i agree.

    The book is still out on whether or not Mr. Renzi can do the job.

    But, he is the only leader of a major nation that has started reform, seems to be committed to reform...and, at this stage has the support of his nation.

    France doesn't have a leader...and its leader has little support. Same with Spain. Same with Greece. Same with Portugal.

    And, Mr. Renzi has a record as a "doer" as Mayor of Florence.

    Furthermore, all I am saying is that the "south" of Europe needs someone else to look to than Germany. If Mr. Renzi can "get things started" then maybe he can serve as an example to others.

    Still a long way to go.
    May 28, 2014. 07:09 AM | Likes Like |Link to Comment