oldlures1

Citi's Flip-Flop on Mortgage Cramdowns: A Really Bad Idea

Tom, I agree with you. The underlying basis is, as you said, that "A loan, recall, is a contract, willingly entered into between a lender and a borrower." Sure, some folks were taken advantage of, as has been the case for decades (and not just in banking), but they are the exception; few and far between, not the norm.
It is disheartening and disappointing (though not surprising) that many of the comments reflect/support a lack of culpability on the part of the borrower/homeowner. Sadly, it is the prevelance of such mentality, I believe, that exacerbates many of the issues facing us today and undermines progress going forward.
Keep it up - I like the way you think!

Ugly

I said it once, and I 'll say it again, I believe that the following steps would eliminate half (at least!) of the volitility in the market today:
1) reinstate the uptick rule
(it worked as intended since 1929, but some well-lobbied SEC knuckleheads erased it last year).
2) aggressively enforce the prohibition of "naked" short selling
(you should never be allowed to short stocks that don't exist - can you say "fraud"?)
3) disallow the purchase of CDS/credit default swaps by investors who do NOT have an insurable interest in the company
(I can't purchase hazard insurance on your home; that's illegal, so why should it be okay to buy default insurance in a company of which I have NO insurance interest? It shouldn't!)

If the current market was a bucking bronco, hedge funds would be the rider, and they'd be well past 8-second bell....with no grips....holding a trophy in one hand and a big bag-o-money in the other....just hoping this "ride" will go on forever!

Is Citigroup Failing?

The falling share price is NOT a reflection of failed fundamentals, nor it is a reflection of a "problem". The contrary, it is purely a reflection of bear raiding. Elimination of the uptick rule, coupled with regulated naked shorting and the dubious incentivizing of CDS's (i.e. I can buy insurance in something of which I own NO insurable interest), has produce an environment for unethical practice and bear raiding, not to mention provided the tools by with the former is propogated.

Citi's losses, for the most part, are paper...not cash. The securities on their books are not worthless, but rather not tradable in the current environment (on that note, what is?! Basically, nothing that doesn't start with "T"). So FASB makes them write the assets down on their books.....but the true intrinsic value hasn't dropped that much.

I could be wrong, and only time will tell, but I don't believe for a second that the true book value of Citigroup is reflected in its current stock price. I think it has been tremendously oversold. [Yes, I am long Citi....currently VERY LONG].

You want to solve the ills of the stock market? Here's a few starters:
1) reinstate the uptick rule
(it worked as intended since 1929, but some well-lobbied SEC knuckleheads erased it last year).
2) aggressively enforce the prohibition of "naked" short selling
(you should never be allowed to short stocks that don't exist - can you say "fraud"?)
3) disallow the purchase of CDS/credit default swaps by investors who do NOT have an insurable interest in the company
(I can't purchase hazard insurance on your home; that's illegal, so why should it be okay to buy default insurance in a company of which I have NO insurance interest? It shouldn't!)

Who's Buying Financials?

Time and time again your articles are gloom-n-doom, everybody is wrong and I am right, blah, blah, blah. Personally, I think you've fallen under the spell of the magical flute of various pied pipers; Ackman being one of the most prominent.
I'm sorry, but going forward, I think I'll just skip over your blogs. They're just not worth the read.

Everything Financial Rolls Over: Is a Bounce Likely?

I've never been much of a chart-follower, but it's food-for-thought. Thanks for providing.

The Current Market Atmosphere: Easy Money Hard to Come by

I'm with Sophisse. Can't speak for everyone, but I think it'd do me a world of good to disconnect for a while; seperate from the "noise", and clear my head. Too much info - my circuits are about to short.

The End of the Monoline Bond Insurance Business

At a minimum, it's premature. In a broader sense, it's unsubstantiated propaganda. I regret that I expended time reading it.

Bernanke's Statements: Blatant Lies or Wishful Thinking?

More chicken little rhetoric. Gre-e-e-a-t.
Moving on now...