Buddy

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3 Comments

    • One Question for John Carney on Muni Bonds [view article]
      I have not read John Carney. There are some very good municipals in the market. For an investor, most never keep up with the credit Many years ago when I started in that business, you had to buy and sell bonds based on its qualities and maintained a vigilant watch until they matured. You know things have a way of changing don't they? Within the last decade, investors bot the insurance and payed no attention to the underlying credit. (Today it is easy to access the credit quaility of the bond). Regulatory bodies should set standards for rating agencies to publish why and how ratings were established. By-the-way, the SEC, NASD, MSRB, FASB and other regulators are only trying to narrow the spread to the dealers and could care less about credit. AAA insured, tier-one capital, ain't it great.
      Today there is a huge institutional market, but you are correct, it is dwarfed by retail.
      I enjoyed your ariticle.

      Feb 28 02:40 PM
    • Bonds: Analyzing the 'What If' Scenario [view article]
      Yes sir, you are right-on. By the banks bailing the insurers out of bankruptcy, they saved themselves from more financial obligations and write-downs.

      Insured AAA municipal yields are on the way up. On 1/30/08 the 30 year yield was 4.57, 2/12/08 a 4.47, 2/27 a 5.02, today a 5.14. Probably will stop at about 175 basis over UST making it a great buy.       Feb 28 01:35 PM
    • The U.S. Economy: Remembering the Past Could Help Fix the Future [view article]
      This is the best article I have read describing what "Joe Public" is not aware. It is this simple. People over bought. Losses and write downs are far larger than one can imagine. When I traded no one bailed me out of my bad positions and I had to take my loses. The holders of CDO, SIV, ABC and the like know the market is much lower than their write downs. This was evident when there was no secondary market. The UST yield curve will continue to steepen and seek a level where the Fed has no room to bail this economy out. They are going to run out of options. This is going to be 1928 all over again. Sorry for the mistakes of others and I hate to see a financial collapse, but let happen. Go to cash, UST silver and gold. If we bail out MBIA, AMAC, FGIC, ACA, SCA and the rest of the insurers it will just delay the inevitable because it well happen anyway. Let them find their on capital/resources to keep them in business. It's not up to us to give them or any financial institution a second chance. We tried Rap accounting for the S&L's in the 1980's and they went under anyway. There is a price for everything: let the market work and seek its level. Feb 02 09:52 PM
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