ejhickey

Ben Bernanke Pleads for His Job; My Response to Bernanke

Today it was reported that the Fed tested "Reverse Repos" as a way to drain liquidity out of the system. Does anyone know how these will work or if they will work?

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

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.

Paulson Throws Bernanke Under the Bus, Backs Ken Lewis

Good post . Paulson always reminded me of Mussolini.


On Apr 23 02:08 PM altaman wrote:

> This is what happens when you have a fascist government. You may
> not want to face realitiy but it is what it is.
>
> fas⋅cism   /ˈfæʃɪzəm/ Show Spelled Pronunciation [fash-iz-uhm]
> Show IPA
>
> –noun 1. (sometimes initial capital letter) a governmental system
> led by a dictator having complete power, forcibly suppressing opposition
> and criticism, regimenting all industry, commerce, etc., and emphasizing
> an aggressive nationalism and often racism.
> 2. (sometimes initial capital letter) the philosophy, principles,
> or methods of fascism.
> 3. (initial capital letter) a fascist movement, esp. the one established
> by Mussolini in Italy 1922–43.

Three Banking ETFs That Won't Fail (Thanks to Your Tax Dollars)

Don't be too sure this rally in financial and bank stocks will continue. Late today , I bought the bank and financial ETFs and several bank stocks. I have a pretty good track record at buying at the top. In fact you might even call me a "rally killer". Stay in this sector if you want to , but don't say you weren't warned .