texalope

Financials Future Still Uncertain

Fannie and Freddie are really troubling. As part of their mandate the government requires them to take on some mortgages that are riskier to fulfill their social responsibility. The market kills the stock making a capital raise all but impossible due to shareholder dilution. Paulson then comes up with the" bazooka in his pocket plan" promising taxpayers that if he has to use it the shareholders will be wiped out. He contends that he favors private shareholders investing in the GSE's. Yet, what shareholder in his right mind would invest in these businesses under the threat of being wiped out by the secretary of treasury under the guise of protecting the taxpayers. As a shareholder who lost a tremendous amount of money, it's frustrating to see 200 government auditors from OFHeo swarming over the GSE's books and saying their capital exceeds regulatory requirements by 20%,. Then the Treasury secretary says he;s sent in auditors to reexamine these same books- It's pathetic. Where were these regulators and the treasury secretary last year when the share price was still 70. All the issues were known then and discussed. Our entire government is in reactive mode. THey don't get in front of any issue. This is pathetic. Are these really the best leaders we can find?
The same can be said for the late to the party SEC. All of a sudden after massive destruction of value they decide to enforce short sale rules- and they only apply it to 19 companies. What about eliminating shorting on the uptick rule. I'm not saying that shorts are wrong. I'm only saying that the same way I'm required to buy stock that really exists, a short should be required to sell stock that really exists. What is wrong with that?

Financial Stocks: Where Will They Go Once Investors Sober Up?

And you know this HOW? You provide no backup to your opinion. Why should I place any value on it. This article is a poor excuse for analysis. Hopefully this site will screen your writings before they let you publish again.

We Don't Need Money But We'll Raise Some - Lehman

Although I agree with your observation I'd like to remind you of the old adage that the time to borrow money is when you don't need it.

In today's financial climate I think this was a prudent move whether they need the money or not. If Bear Stearns had been more forward looking, they might have survived.

Lehman Brothers: Blame It On the Shorts

So does this mean its OKAY to start rumors, withdraw money, plant stories with journalists, and any other tactics shorts deem to use?

Time to Discard Price/Book Ratio When Evaluating the I-Banks

Earnings in the IBanks are very lumpy. It's not like selling coke or cereal.
Using a P/E is very risky. Right now, net worth is questionable. There are some assets which may be undervalued too.
I submit that it is impossible to really value these companies at this time. Notwithstanding this, I am an investor in GS because I like owning this kind of business . I like their long term prospects and I feel the stock will reflect their true value over time. If you study their history you quickly recognize this company is a survivor of all kinds of investing climates. They have always attracted superior management that capitalizes on the situations presented to them.
I'm comfortable accepting this as the basis of my investment.