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Bank of America Nationalization Would Shock, Not Help, Economy

I own common shares of B O A. I had read in many financial magazines that bank stock was where to be. I believed them so over the years I accumulated several shares of BOA and USB. I do not want to lose many dollars to nationalization. Who would buy the toxic waste? Some wealthy people would get a terrific bargain by buying BOA in a fire sale after the taxpayers have picked up the waste.

Noone has mentioned the nationalization of GM, a company that would solve its problems if the $53 per hour production workers would take a $2 an hour reduction in pay. This action alone woud save GM $3,904,000 per day. Let's see--244,000 employees times $2 per hour for 8 hours equals $3,904,000 This figure does not take into account that skilled workers such as tool and die makers get up to $73 an hour. No politician has given a peep for this idea. The union has agreed to a small reduction in health benefits. Now if we get a national health bill the union has in effect given up nothing to save their jobs.

The Democratization and (In)accuracy of Financial Data: BofA's Share Price

I can't see any reason why the government should take my money because one or two individials did not do their duty. I have to wonder why the directors should not be sued for not fulfilling their fidiciary duties. Should we also nationalize the auto companies? Should we some how put some controls on the United Auto Workers? Hey, this is a global recession, not just an American problem.

Three Electric Utilities to Own, Three to Avoid

I feel that Scotto failed to mention OGE. Oklahoma Gas & Electric is a better utility than any one of the three he praises. I have owned OGE for a number of years and I have been well pleased with their dividends. I am an investor, not a trader. I am retired and use the money to supplement my S.S and pension.

Nationalize U.S. Banks

It is very easy to say "nationalize", but you fail to mention thay many who own the stock will lose many dollars to our government. If our government is smart enough to run a bank why did it let medicare and medicaid get in a worse financial shape than our banks. Whose dollars is the government using to operate medicare and medicaid? Why have so many state governments gotten into such bad financial shape? As Ben Franklin once said, "a government that can take care of every need can also take all you ever had." I don't like the bailouts, but if that failure of any restrictions on their use is any indication of how Washington is going to run our banks or auto companies may the Lord pity us.

Thain's Undoing: Thinking He's Worth It

Since we are on a blame train let's take a look at Bank of America. How can one approve the investment of millions of dollars in a Chinese bank that their government could nationalize at a moments notice? As I recall that investment came just a few days after the BAC offiicials went begging the Feds. for a loan. In a period of time we taxpayers are helping improve the financial condition of a potental enemy.

Taxes: So Complicated, Even the Folks in Charge Can't Get It Right

On my 2006 tax return I showed that I exchanged one mutual fund for another fund within the same family of funds. In other words I traded any equl value of one fund for an equal value of another fund. Bulletin #110 specifically says this does not constitute any capital gain or capital loss. The major fund family sent a report to the IRS specifically saying I was trading one fund for another of equal value. Did the person reviewing my tax return accept this? Absolutely not. That person insisted that I had made a sale and would be required to list the cost of each fund. Both the receiveing fund and the exchanging fund. I sent copies of the funds records to this IRS person, but she still insisted that I had sold the first fund and bought the second. As I tried to explain, I did not receive one dime nor did I pay one dime for this exchange. Either the forms are too complex or the personnel in IRS are not adequently trained and worse yet, the employed personnel receive little or no supervision.

As a last resort I paid the IRS $39 for a copy of my tax return and they, after eight weeks, notified me they could not find a complete copy of my return. My original return was sent to the St. Louis office, but in my efforts I had to try to work with an employee in Texas. They did finally mail me a check of $39 to replace the original I had sent to them for a copy of my return. I'm still wondering what happened to that part of my return that was lost.

Finally, rather than pay an attorney a large fee I decided to pay the amount supposedly owed and then remembered that a former employee once told me "When you get into an argument with a skunk, you are going to lose."

Are Preferreds Staging a Comeback?

I would like to see a few more names of preferreds instead of just one or two. One or two stocks do not necessarily reflect the whole sprectum. Why is PECO 4.4% never mentioned in these columns? At today's price they offer an excellent yield. Preferreds offer an average person a way of getting a good return without investing $10,000 or more as required in bonds.

The January Effect Explained

After reading the article I have decided to wait until the market settles down more into February. Thanks for explaining your theory.

Fast Money Recap - GM and Ford Go to Washington (11/28/08)

I like the coments better than I liked the authors. If Ford & GM get a bailout without an adjustment in their costs the Feds. are fools. Even the big three's cheapest fuel-efficient autos are almost $2 thousand more than the Japanese models that are rated higher.

Can a Broken New York Times Be Fixed?

I think the NYT should take more of a middle of the road approach to its reporting and especially editorials. I qiuit the NYT years ago because of it extreme liberal bias, especially in its editorials as well as reporting. I read a newspaper if its does not openly show its bias. I avoid news items that slant views of either Conservative or Liberals.

Big Cap Financials Are Scary

When I think of BAC investing $6 Billion in a Chinese bank after getting a $15 Billion bailout, I say there should be more control of how this money is spent.

Two things happened---one our highly paid beaucrats in Washington were asleep and BAC made a ludicrouse use of this loan. Will this $6 Billion purchase become a gift to that Communist nation? Remember, the government of China could nationalize their banks over night and take control all assets.

Did you know it would take one a lifetime to count to six billion? I once offered any student $20 who could write to one million during their Spring break. Some tried but after two days they gave up. Now, how much is one billion?

What Does Bank of America's Decline Mean for the Global Banking System?

It is hard for me to see why BAC invested in a Chinese venture when everyone knows that in a Communist dominated country the government can nationalize any industry and take complete control of its assets and operate it as the beaucrats wish. I also agree that the take over of Countrywide and Merrill were risky moves. Let BAC stay with banking and not other activites in which they are not well versed.

Tuesday Market Preview: Down Further?

How can one justify a healthy bonus when he/she is the CEO of that failing company? Why has our inefficient government not put an early lid on bonuses before a bailout was approved? Another proposition that intrigues me is why do the majority of stock holders approve extravagant salaries, for failing companies, every time proxy time rolls around. The Board of Directors alway request a yes vote. Their argument is they don't want to lose their top people. By the way the
Board always wins the salary, bonus, and stock options they requested for the CEO's. I voted no on a request for a 12-B option for a mutual fund. I got a long distance call from some person in the upper echelons who asked why I voted no. I said that 12-B provision would not benefit me one cent. They held another vote and it was approved. I dropped the investment and I have had no reason to regret my vote.

General Electric: Genuine Risk of Collapse?

Thank you for this informative article. I was about to bu shares of GE within the next couple of months. After readig you informative article I believe I will wait and in the meantime I will keep a weather eye out on GE.
Your article gave more information on GE than almost all financial papers combined.

How Will Banks Spend Their Bailout Money?

Congress has opened a Pandora's box and now has no idea how to close it.

The automotive companies were second in line for a handout and now cities and their lobbyists are descending on Washington with hat in hand.

Did any of these companies try to re-negotiate contracts and reduce long company paid vacations and high hourly salaries? Surely these workers would rather lose a little that would save their jobs. GM, Ford, and Chrysler will be right back with these same problems unless they can learn to build better cars at less cost. A bailout may be the answer for maybe a year and by then the above companies will be back wanting another bailout.