ponchovilla

191 Comments

    • Stimulus Tracker: Results Are Scary [view article]
      The next time you hear "economic headwinds", "rebalancing"... or "protecting the taxpayer" make preparations in a tornado shelter and hope that it's not a flood that will kill you. Sep 29 10:00 PM
    • Are We On the Verge of a Rally? [view article]
      You're describing a LUV rally. Like the lowly fraternity brother who was blind drink, unshaven and sweaty and passes out in a bed to find he wakes up with with an ugly fat girl the next morning. Did they make love or will this turn out to be a bad dream with consequences?
      Veni summarized it quite well.       Sep 29 04:55 AM
    • GDI vs. GDP - Which One's a Better Recession Indicator? [view article]
      The amount of cash in your wallet at the end of the month. Sep 29 04:39 AM
    • There's No Happy Ending to This Bailout [view article]
      I borrowed $100 from my best friend with a promise to pay it back when I deposited my next paycheck. When I went to return it, he wasn't there so I gave the $100 to his wife. She called her girlfriends and spent the $100 at lunch and while they were out she charged $200 on her credit card.
      Tears?       Sep 29 04:30 AM
    • Bailout Should Be A Windfall For Taxpayers - Barron's [view article]
      Wind = Hot air blowing
      Fall = Descend from a higher position

      I agree with the author who may not be a proxy from the Barron's I used to know. The taxpayers will be brought to their knees, if not placed flat on their back, from all of the hot air coming out of Washington.

      The RTC lost $124B based on a white paper recently published by FDIC analysts. The fact that the loss was not $350B is not comforting. In the RTC case the government owned the underlying assets. Simple math. A+B=C

      Do the math. This is equivalent to asking someone incapable of balancing a checkbook to understand "partial differential equations". Check wikipedia. There are too many variables in this calculation period. More disconcerting is the assumptions of this complex mathematical formula are being provided by legislators (Politicians). It is no wonder Ben Bernanke does not want to play in this game. He has his hands full already and is prone to fumble if he has to carry the ball on every play.

      It's not even "fuzzy" math or "Bushy" math. It's "wiki-wiki" math.

      Until housing affordability comes in line with the real number for most Americans, the underlying mortgage cesspools will continue to stink.       Sep 28 10:43 AM
    • McCain's Economics [view article]
      Felix; Stay out of politics. The McCain supporters declared victory. The Obama supporters declared victory.
      John McCain does not need to be an expert on the economy; He has Phil Graham, Larry Kudlow and Mark Perry plus over 500 experts in the House and Senate.       Sep 27 07:05 PM
    • Housing Excess Looks Good, but Not That Good [view article]
      When the trend reverses it overshoots and looks like a 200,000 - 250,000 inventory of unsold new homes may signal a reversal. I would expect that builders will be challenged for several years to build more affordable housing due to high energy prices, cost of credit and down payment issues. This will continue to pressure earnings.
      The consumer needs to have control of debt to income, not just principal, interest, taxes and insurance. Car loans, credit cards and utility costs are "virtual (real) debt" that needs to be a factor in the housing affordability calculation. Maybe the range of 2.5-3 X income with 20% down should be the new calculus for buyers as few jobs are providing annual income increases over inflation.       Sep 27 11:32 AM
    • On Board the 'U.S.S. Titanic' [view article]
      SUPERB.
      The Titanic analogy was near perfect.
      The situations that you describe are based on Common Sense and Truth. Combined with Integrity, these are three characteristics lacking in most Politicians and the self interest crowd.
      America is about to go a massive expensive diet.       Sep 26 08:12 AM
    • SEC Triggers Prison Construction Boom [view article]
      There is room at a tropical resort in East Cuba. Sep 25 10:39 AM
    • What's Wrong with the Trickle-Down Bailout? [view article]
      It depends on the magnitude of the trickle (or drip). Normally I would say give the government a dollar and get 30 cents back. In this case "fella, can you spare a dime" might be optimistic. Sep 25 10:25 AM
    • Bush's Speech: Surprisingly Coherent [view article]
      ABSOLUTELY BRILLIANT POLITICAL THEATER WORTHY OF A EMMY AWARD. HIS BEST EFFORT EVER. The message: If Congress doesn't do this there will be a serious recession and it won't be my fault.
      Very well written and excellent delivery.       Sep 25 08:47 AM
    • What Credit Crunch? [view article]
      Clearly Hank Paulson and Ben Bernanke aren't aware of this data otherwise they wouldn't be wasting their time testifying before Congress. Maybe I'm too hasty. I think they just applied for a $700B Visa card. You're absolutely correct. Sep 25 05:54 AM
    • Again ... It Wasn't Fannie and Freddie [view article]
      They didn't cause the problem but were willing participants. Too much money slooshing around paid a lot of people to look the other way. When you get caught with your pants down blame the "shorts" Sep 25 05:35 AM
    • The $700 Billion Disconnect: Lost in Translation [view article]
      I'll agree Bernanke is an apprentice politician. He is uncomfortable with his current situation but knows how to defer on questions that are not in his area of responsibility. As for Paulson, I totally disagree with your premise that he is not a politician. Political savy is in the corporate world is a key to rising up the corporate ladder.
      Paulson can read his written testimony with conviction. When it comes time to answer questions he is nebulous and does not install confidence. His record of saying one thing and doing something else is well documented. The political pit bulls feast over his flip/flops.       Sep 25 05:18 AM
    • The Unfortunate State of the Current Housing Market [view article]
      Let's make this easy. Your child has just graduated from college with no student loans, no credit card debt and you bought him/her a late model car for graduation. He/she starts out with a job at $50K in a city with a cost of living index at 100%. You get to make the rent vs buy analysis. What do you use to make your recommendation?
      1. Recent transactional value of home prices relative to GDP
      2. Ratio of rental income to home prices
      3. Housing / rental affordability based on income and "wisdom factors"?

      Housing prices are destined to fall and will probably remain flat for many years with few exceptions.       Sep 24 06:50 AM
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