texalope

Chart of the Day: Wells Fargo's Construction Loans

Why don't you point out these statistics represent a percentage of only 4.5% of their total portfolio.

Buffett's Financial Bets

If muni bond insurance is so dangerous, why is Buffet selling it. He said 77% is in a second position and he's being careful. How can you be careful? He's humasn so maybe he's talking his book. After all, MBIA is about to start selling again.

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?