User 125027

"I do not understand how financial institutions could think they could take taxpayer money and turn around and act like it’s business as usual ... but they seem to be winning this argument." - Elizabeth Warren of the Congressional Oversight Panel on bonuses and the power of banking lobbies (videos, about 10 mins.).

They are only following the example set by Congress.

Floyd Norris calls out NAR's Yun on his lamenting faulty home appraisals. "Given that a significant part of the housing problem was caused by appraisers who signed off on exaggerated home values, it takes a lot of nerve for the realtors to demand that appraisers now ignore market prices in order to let them sell houses."

Ummm, isn't a market price defined as the price that a willing buyer and willing seller agree upon? Can't get much more "market" than that.

Tangible Common Equity: How Much Is Enough?

Tacitus -

Please explain how a declining stock price has any effect on tangible common equity (which is assets-intangibles-lia... A lower stock price makes it more difficult to raise additional common equity but has no effect on existing TCE.

Tactical Asset Allocation, Part II

Hi Geoff,

Quick question - are the returns you refer to on BRK.B the returns of the stock or the returns of the top 20 equity holdings that you previously analyzed?

Thanks.

Fannie/Freddie Bailout 'Disastrous Fiasco'

Brutto,

My comment had nothing to do with the value of the equities. I was merely trying to point out that this should be looked as a the purchase of a distressed asset by the government, not a bailout. Who exactly was bailed out? Certainly not the the preferred or common shareholders. Perhaps the debt holders, but there was always an "implicit" government backing. Besides, we need all those foreign buyers to be protected if we want to keep the printing presses running!

Fannie/Freddie Bailout 'Disastrous Fiasco'

The notion that we doubled the size of the national debt is simply ludicrous. There are assets that go along with those liabilties. The difference between the liabilities and the ultimate value of the assets will determine the cost to the taxpayers. These were formerly profitable entities that went astray from their core business and became distressed assets. Any investor with an unlimited checkbook and the ability to borrow at some of the lowest interest rates in the world should be able to turn these around and ultimately make very handsome profits. But then again, we're talking about the Federal government, so expect them to find a way to lose money on this deal.