johnthebear

Tuesday Outlook: Commodities, Emerging Markets, More

"WE MUST VOTE OUT ALL INCUMBENTS no matter which party they are in."

There can be no change with a "new" president, with the same bunch of FOOLS that got us in the mess.

Tuesday Outlook: Commodities, Emerging Markets

Jim Bunning got it right:

Paulson, you were CEO of Goldman Sachs from 1999 to 2006 yet you did not know the problems that were created by the CDO and securitization of dumb subprime mortgages and the lack of oversight!

His comany was a leader in changing the law in 1999 during Clinton's term that allowed all this crap to happen! How can he claim such ignorance? Are we dumb enough to buy that line?

The lowest quality mortgages were still being written all through Paulson's term.

They have not talked at all about commercial mortgages. They will be marked to market, a cut of 25% or more in lost value. Talk about a huge loss. General Growth Properties REIT fell 25% yesterday because of inability to re-finance it's debt. I hear that McDonald's was denied new financing by Bank of America because of a shortage of capital!

There are many properties that are mortgaged for $1 billion or more! Just think,

700 properties at $1billion each would consume all the money Paulson is seeking!

And now he would include credit cards and student loans!

What in the world does he mean by transparency and oversight? Wait till he spends all $700 Billion taking care of his wall street friends before he informs congress of his strategy?

Oversight should allow review and reports on a weekly basis to Congress, and with the opportunity for congress to disagree with his assessment of what to do. So far, I see no way for Congress to ever take a look at how he is doing!

Looks like we are heading to caves, automatic weapons and canned food for survival! God help us!

Thursday Outlook: Commodities, Emerging Markets

David, you said that you would be talking to ProShares on Monday so that you could help me understand the mechanics of how they do the 2:1 double shorts for FXI/FXP and IYR/SRS.

Really would like to hear your thoughts on this subject. Thanks, John

Ultra and Inverse ETFs: The Downside of Doubling Up

To: William Edwards,

Thank you so much for your comments and analysis. You have really made me think! I don't know where to turn now.

As you said, their is no real descriptive info provided by ProShares. So it looks like a call to Congress may be the only way to address the issue and this might be too late to do anygood. I have a feeling that the regulators will neither respond or give a meaning full answer to this complex question. I am now considering leaving the SRS/FXP ballgame before I am left holding the bag!

Ultra and Inverse ETFs: The Downside of Doubling Up

I use FXP and SRS, but I am sorry to say that I do not understand how they actually make it work?

Who is on the other side of the trade that buys when I sell or sells when I buy? Do they use some sort of a put/call thing? I wish someone would explain this for me. It has been very profitable, but I would be embarassed if I had to explain it to my wife!