the details

5 Comments

    • Leverage 101: The Real Cause of the Financial Crisis [view article]
      Andy is right and User is right and bbzz is right ... higher leverage comes with higher risk. However, even if some individuals want to take very high risk, financial banks should not let them (because they share this risk) and are not allowed to (they need to have sufficient capital).

      But lenders not only did it (too high leverage) themselves, they also encouraged you and me to do the same, with some of us (the so called fools) not being even aware of the high risk. Now we have a big bunch of people loosing their homes, investment banks going belly up, financial market in a collapse, economy at risk - and all those executives who not only knew the risk, but also orchestrated it and led us right into this mess walking away with their large 2002-2007 bonuses and golden parachutes.

      Let's say you were one of these smart executives, being paid $100M to find a big bunch of fools, lead them into the ditch, then walk away with the money and not look back, ... would you?

      This is the most expensive lesson about (abused) capitalism, (dis) honesty, (lack of) values and conflict of interests in modern history.       Sep 25 07:10 AM
    • Today's Other Bailout: $25B for Auto Makers [view article]
      It's about $80 taken out of my pocket, another $240 from my wife + 2. You're paying it too. The executives of the 3 deserve large bonuses for their fantastic $25B gift to their share holders. They're still using red ink, but hey --- we could pay them handsomely from the loan money. After all, easy come, easy go. Sep 25 12:12 AM
    • GM and Ford: Still Easy Shorts [view article]
      Great articles. Commenting now in September and looking back, or forward, I only see much more of the same. Anyone who believes that the coming $25B federal loan will solve their situation is wrong. Look at GM's balance sheet. Even better (or worse), look at Ford's financing division, its total debt and its default rate. If you thought of Ford as a failing car manufacturer, how about thinking of them as a credit bank, which is what they essentially are for the past couple of years ... starting now is almost too late. Sep 19 05:26 AM
    • Still Bullish on Graham Corporation [view article]
      Sorry, I can't learn a thing from your article. You do not even mention what is Graham doing, in which sector, why is it so successful and why would it see such a bright future in a downturn economy. I am much more interested to know how did you pick your long position in Graham two months ago.
       Aug 13 05:24 PM
    • Just How Strong is the Euro? [view article]
      The US$ lost about 12 % while the GBP "only" 8% - your graph is somewhat misleading.
      Jan 07 12:03 AM
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»