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Michelle Caruso-Cabrera, Charlie Gasparino Bash Finance Blogs

I have to start reading Zero hedge if CNBC is trashing them.

Michelle Caruso-Cabrera, Charlie Gasparino Bash Finance Blogs

I secon your comments


On Jul 23 07:25 AM richjoy403 wrote:

> I was watching CNBC since it was the previous network. Investments
> are serious business to me. There is a balance between information
> and entertainment, and CNBC often favors entertainment (especially
> before the market opens)...also I have no interest in whether Bartromo
> or Burnett is their #1 babe.
>
> CNBC is after all intended to produce a profit, and not a small one.
> So, complaining about their stupid antics (e.g.; the seals blowing
> horns) isn't going to produce an on-air change unless the bosses
> decide it is reducing profits.
>
> The #1 thing that bothers me all day long (and I do watch all day
> and through Fast Money, as I can't accept Cramer's antics), is that
> they permit/encourage what should be a useful discussion by persons
> with opposing views to degenerate into a useless and wasted opportunity
> wherein those persons talk over each other before a coherent view
> can be expressed.

Harry Schultz Letter goes wacky: "Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year... Inside the State Dept., there is a sense of sadness and foreboding that 'something' is about to happen... within 180 days, but could be 120-150 days." FYI, Schultz is up 81.7% to date.

Just read this. There may be a incentive to devalue the dollar . a 505 devaluation would effective cut the deficit in half without a direct tax increase. It would also help exporters and companies that get much of their revenue form outside the US. It would also help many people with large student loans that they can't pay back as well as reinflate housing prices and maybe even a boost to the stock market

Very short term benefits, long term disaster. Probably the only thing stopping the administration is how to get away with it without a public relations disaster. Who knows if it will happen but I would not rule it out nor would I fail to make some contingency plans

Did We Nationalize Banks, Or Did They Nationalize Us?

I was stunned to hear Larry Kudlow defending Hank Paulson. Essentially what Kudlow said was that Paulson may have broken the law and exceeded his authority but it was ok because he supposedly avoided a disaster. In other words the ends justify the means.

Of course Kudlow also said he expected a good earnings report from BAC. Just the opposite happened and BAC stock has taken a big step BACwards. So much for Kudlow's theory that they banks are profitable and will lead the economic recovery

An Ugly Messy Market

"The only bad news is that a number of large banks have said they won't be accepting the IOUs after Friday."

This is bad news? This is actually GOOD news. If the banks accepted the IOUS and gave people cash , they would be hurting their capital structure and monetizing California's bad paper. For the banks that accepted TARP funds , they might even be vioating the terms of that agreement. Keep thos toxic assets out of the banks. Let people and businesses who received the IOUs sell them on the open market for what they are worth.

5 Ways Your ETFs Can Pay You

What about covered calls wit ETFs?

California's IOUs: Unintended Consequences of TARP Mentality

Perhaps another reason for BAC's reluctance give owners of IOUs cash past 7/10/09, is that the State Treasurer said the IOUs would be paid by October 2, 2009 IF California had the money. Also it is unclear that interest will be paid on the IOUs after the due date. If BAC did not limit their exposure to this toxic paper, they could wind up holding large amounts of illiquid paper on which no interest would be paid until redemption. Giving out cash for this potentially bad paper may violate the terms of TARP . Also since the US Government is a partner with BAC and other TARP Bank, turning this paper into US Currency may constitute de facto currency creation which is the exclusive power of the Federal Government. Turning these warrants into cash would in effect monetize California's debt.

What Causes Foreclosures?

From the article: " Barney Frank is pushing to reduce underwriting standards, again. He believes that high down payments are too onerous for people that desire to own their own home."

I remember an interview that Bloomberg did with Barney Frank in September 2008 in which he said "We encouraged too many people to buy homes and failed to recognize that some people are not culturally suited for home ownership." Barney should listed to his own advice but then listening or consistency has never been part of his personality.

State Budget Gaps and Investment Implications

Good article and much more realistic than the one I just read on CNN Money which minimized the risk of investing in California Munis. I also just read an article on the Daily Kos (liberal) which speculated about the billions of dollars that could be saved if California did not have to pay interest on its debt.

There is much more risk for invstors in State and local debt than investors perceive. As soon as someone says "Default can't happen" the caution flag should go out.

No Bailout for the Governator: California's 'Fiscal Emergency'

Will the Federal Government accept California IOUs for payment of income taxes?

Time for California Muni Bond Investors to Take a Stand

I wonder if the following scenario is possible.

California defaults on it's General Obligation bonds. Then the Federal Government decides to do a bailout for California and a reorganization of their finances. as part of this process, the decision is made to change the priority of the bondholders. Another possibility is the Feds decide to cancel all of the state's bonds and offers the holders 50 cents on the dollar. After the Chrysler Bankruptcy, I believe something like this might happen in regards to California Muni Bonds

On Fake Bonds, Owning Gold and the Inflation vs. Deflation Debate

There are some very insightful comments about this article. I think I have a better grasp of this problem. I will probably print out the comments to share with some friends .

Beware Executives' Double Standard

Guys like Louis Gerstner just want investors' money to play with for the long term in order to avoid being held accountable for poor stock performance and low dividends. Proposals like this are no less than legalized theft by Corporations backed by the taxing power of the government. What is the point of investing if you can't take profits and have to wait for years to sell while some idiot CEO fritters away company profits or the price tanks because of external events. If this passes expect a number of reactions, none of them good for US markets and corporations

Gold traders with bullion stocked at Comex say they're not getting the right bars (these things have serial numbers). One possibility is an honest mistake. The other - that the bar indicated on the warehouse receipt doesn't exist - is pretty dire. More from Joe Weisenthal.

Interesting article. I have a Gold and Silver contracts coming due soon. I am planning to take physical delivery. Maybe I should plan to show up at the vault in New York in a large SUV and some friends.

Former IBM CEO Louis Gerstner urges regulators to shut down the Wall Street casino by taxing daytrading gains by 80%. Six-months later, it should be 60%. And five-year gains should be tax free, he says. (via) That's one way to bring back buy-and-hold in a hurry.

Maybe it isn't such a bad idea. It would certinly reduce the incentive for trading stocks and result in lower volume. this might mae it easier for individual investors t manipulate prices .