pochovilla

Will Lehman's Bankruptcy End the Moral Hazard?

Fewer morals, more hazards.

Is the SEC 'Rumorgate' Push a Waste of Time?

SEC TO HIRE LUCENT RETIREES FOR RUMOR POLICE

I heard a vicious rumor that the SEC is planning to significantly increase the size of their organization by hiring Lucent retirees as rumor police. No Nortel folks can apply as they are Canadian (US citizen who works for a Canadian Co is per se illegal) and are considered illegal aliens. “A person said “ (anonymous source) that a budget of $50.0 B per year (off balance sheet) is being proposed. Funding for the organization will be on balance sheet by charging a $10.00 fee to each blogger who posts a “rumor” without substantiated facts. Google will receive $1.00 for each blog deemed a “rumor” that is forwarded to the SEC. The FTC will study whether or not a single source contract with Google violates any anti trust laws. An opinion is expected by 2050 as this is a complex issue and requires “scientific data “ to prove or disprove any allegations of potential violations of the law. Of course the President can issue an executive order providing blanket immunity. Google does not have to substantiate the blog as a rumor too much as their legal department will define rumor based on a Henry Paulson explanation (what did he say?) Estimated revenues are more than $500 B per year. However Congress has already lined up to spend this new source of revenue on “bookmarks” as earmarks are out of favor and not politically correct.

In another news flash the SEC is alleged to be cracking down on naked shorts but only as they relate to Fannie and Freddie. After all who wants to piss off the Politically connected Wall Street friends as the fee structure for naked short transactions are a high profit “financial instrument”.

I hope all of this is true as our Government will demonstrate substantial creative thinking: THINK OUT OF THE BOX

Also it is claimed that a web site will be established where a blogger can pre pay $10.00 for each rumor. No disclosure would be required except a notation PPR ( PrePaid Rumor)

21st Century Central Banking

The moral of this story is be like Warren Buffet: get far away from these folks and go fishing.

No Uptick Rule: A Convenient Scapegoat?

From what I read the naked shorting is potentially a bigger problem than the uptick rule. Will we ever find out with the SEC?
Here's a bit of worthless advice: Don't ever mention Cramer or Kudlow in an article again. I personally enjoy what you write and the opinions you express on the "clown" shows. You get lots of attaboys. But as a wise old sage said to me "one ashit wipes out 1400 attaboys."

Backroom Bear Stearns Deal Exposed

The moral hazard of the FED's action was substantially less than the economic hazard. It was a case of a bad choice or worse choice. I applaud Bernanke for making a fast decision. How many decisions come out of Washington that are either fast reasonable or efficient? Left to Congress this would likely drag out for many months. $29B is going to look like chump change when measured against the loss of tax revenue from this whole mess.

Treasury Sec. Paulson Rejects Systemic Approach to Foreclosures

Did Paulson have a good reputation on Wall St? As far as I observe on TV and C-Span his qualification for Secretary of Treasury was Political as in contributions to Bush & Republicans which now are returned as favors to his friends fraternity brothers at GS and on Wall St.

Ben Stein and Bear Stearns: Getting It Wrong

Stein is losing his ass and wining about it. Ignore him.

Let's Wait Before Annointing Bernanke "Slayer of the Evil Commodities Bubble"

This is a bi-polar deer market and very nervous. Price and value are totally disconnected. Fundamentals are disconnected from price movement. "Journalism" is at a low. Slap a chart to a headline and declare total victory today. Slap a chart and declare defeat tomorrow.
Short today, cover shorts tomorrow. Insanity, stupidity brilliance or is this normal. Place your bet and watch the wheel spin.

U.S. Equities: Past Returns Not Necessarily Indicative of Future Performance

Mark: See if you can be invited to Kudlow's Klown Show. I'll bet you wouldn't be able to speak three sentences before an argument interrupts and no one can hear what your saying.
Nice work. If you recite Graham... then either now or in the past you had (have) common sense which has more value than Platinum/oz.
Of course this is boring stuff and has little entertainment value.

Now Presenting: Deflation!

I m en idyut. I liv in a trayler in Rkensaw. I hav no credot ownlee sum muny inacan. Wut is muny supli? Ifin I gitz ona plain to Lundun wut can I bye wen I gitz ther? We hav sum deflation here in Rkensaw. The dog is thinnen out cuz ther iz no fuud.

Please do not argue with Mish. He makes a great case for deflation. However anything resembling an inflation argument is only anecdotal evidence and must be discarded without prejudice. There is a great gap between an Economist and the common man who would erroneously believe:
Inflation is the decline in purchasing power of the currency held. This is particularly true at the end of the month when his $25.00 buys less beer. The deflationary condition of the trailer next door at half price does not enter into Joe Sixpacks quantitative analysis.

Spel chek don’t work so gud

A Dozen Notes on Our Manic-Depressive Credit Markets II

Congratulations David. You're a journalist that actually writes something worth reading. Most other "journalists" are elementary journalists as in "show and tell" and "cut and paste" (first-third grade).
Our Country has lost its moral compass and work ethic as well as it's manufacturing base. We're being entertained into bankruptcy. Our primary education has failed in math, science, history and physical education. CEO's run companies as Kings and Queens of the worst type. Our Government is so broken and inefficient that it is little more than a bureaucratic job creator that produces little more than waste paper to be shipped and recycled in China. There are conflicts of interest at every turn. The TV media, Radio and written newspaper media are afraid to criticize business. Headlines are head fakes because most people can't read or listen past a sound bite. The devil is always in the detail.
So, who hears the voice of the skeptic, the whistle blower, the constructive critic until it is too late?
And in the end, who suffers from "Greedalism"?
Our younger generation is beginning to see this. There will be new leaders emerging to cast out the bad apples and allow this country to regain it's proud heritage. It may take two generations to accomplish this.

Wall St. Bonuses Up in 2007, Despite It All

Just goes to prove that the members of the club (includes CEO's and BOD's) win regardless of the damage to shareholders.