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Turning Japanese: The Audacity of Reality (Part 3 of 3)

You are a very straight-shooter, but I wonder whether the "shock and awe" of revealing our true state, may be a matter of National Security (TS).

On point #5, regading GM and the other North American Auto Producers... GM can survive, but it must be transformed. This is a rare opportunity for the rebirth of the entire North American Auto Manufacturers... If that group can cooperate with each other and with the US government, then GM can play a part in a new structure, which like Japan, coordinates and maximizes efficiencies, including financial accomodations. Envision the forward-leaning Tesla being mass-produced (at much lower costs), in GM factories, using the experience and resources of that automotive giant. Then, envison these electric cars being exported, worldwide. Nuf, said.

What's Wrong with TARP

I like your plan... At least all the "junk" would be gathered together into one place, isolated from the nation's primary banking system. Good banks should be nurtured, just as bad ones need to disseminate over time. Your strategy contains the key elements of the restructuring and would appear gradual enough to avoid any shock to the primary system. It would appear that "Jubilee" has come for the banks (occcurs once every 50 years)!

I am heavily invested in MI, right now... I would say that it's going to be a long wait, but with the volatility we've seen, anything is possible (just so long as the presses keep printing). Honestly, I can imagine situations where MI could go either way, but I am heavily biased towards the positive, in this case.

It looks as if our economy is going through DETOX... Recovery and new life (business activity) await. It may take a while and it may hurt, but the outcome will be something that we can be proud of in fifty years from now.

Financial Sector: More Dividend Cuts

I am an MI shareholder and though, I regret missing a good dividend, I agree with this action (lowering dividends to .01). To even allow the perception, that "bailout" money is being passed-thru banks in the form of dividends to their shareholders, is unthinkable. This is a clean field, now, and good banks should prosper upon their merits. Play ball!

It Could Happen - Cramer's Mad Money (9/26/08)

I have to disagree with Cramer, on the "dire straits." I believe that the fed will loosen, soon... 1/2 point! The deal is in and we are OK, now.

That said, on Friday, I began BUYING, not "SELLING into strength..." Boeing, Morgan Stanley, Freeport-Mac, BHP-Bill and Petrobras, to name a few... I confess that I sold MI, but my performance expectations had been met and I needed capital to invest in the beaten-down basics, which I picked out of the bone yard. Every one of these stocks, I owned at much higher prices, earlier in the year... Nothing has really changed, except that there have been a few bank runs, as people draw their deposits down, in order to buy equities... Maybe, Cramer is using reverse-psychology, or something. Cash may be King, but equities are emperor! I'm not quite ready to do fertilizer or solar, again yet. I look for Monday to be a triple-digit UP day, not only because of this post, but because of The Deal with Congress, as well.

10 Top Dividend Stocks of the S&P 500

I like MI. Rather than being forced into a reactive-mode, as IndyMac was, MI sold their data-processing unit and now apppears ready to pay their dividend. They saw this coming and avoided being put into a position of distressed sale of assets, at firesale prices. I'm over-weighted in MI, as of today... The financials have been painted with a broad brush and I believe that MI is way oversold.

Rogue Traders and Economic Capital

I've heard that mortgage salesmen receive a front-end commission, when they approve/close a deal... Often, this same person then leaves the company, cash in hand. Wouldn't it be better if he received a flat salary, plus an annual bonus, equal to the pro-rated portion of his gross commissions, for the loans which he made, that are continuing in good order?