jimmy46

Municipal Bonds: A Clear Case of Buyer Beware

Of course Muni's are having problems,

These prime slime people are reneging on their property taxes at the same time they chisel on their mortgages.

Monoline Mania: MBIA and Ambac Included in the Dash to Trash

Thanks for the answer,
"Jay Brown said it could take 4 years for all of this to be resolved. "

That may be optimistic, I bought some MIR eight years ago,
my account still has some "MIRA##" with a zero value
that represents the litigation value of the suit MIR has against
its former parent.
No end it sight, and that's peanuts compared to the subprime mess.
Your articles are very good, keep them coming.

Monoline Mania: MBIA and Ambac Included in the Dash to Trash

Hello Tom
Here's something in the news yesterday:

""Investors who believe that major credit-rating firms should be held responsible for their disastrously optimistic ratings of subprime-mortgage bonds have won at least an interim victory.

U.S. District Judge in New York ruled late Wednesday that Moody’s Investors Service and Standard & Poor’s can’t invoke the 1st Amendment to hide from subprime-related legal challenges.""


Is this ruling likely to have significant benefit for MBA,
or do the rating agencies have 10 more lines of defense?

MBIA Reports a Profit: $1.1 Billion in Expected Recoveries on Claims

Great analysis Tom,
I've been long myself thinking along your lines.

Ben Graham Had It Right

Had hedge funds and banks understood the limitation of mathematics in the field of finance, they would not have plunged so willingly into sub-prime mortgages and CDS; and we would not be in the pickle that we find ourselves today"""""""""

SORRY, DON'T AGREE.

THE BAD BOYS ON WALL STREET DO WHAT THEY CAN TO MAXIMIZE THEIR BONUSES.

THEY DON'T CARE ABOUT RISK, LOSS TO INVESTORS OR ANYTHING ELSE.

Stimulus Plan Includes Tax Breaks: Stocks That Will Benefit

The reason corporations should carry tax losses back 5 years is because their profits (and taxes) are just ESTIMATES.

Estimates of depreciation, etc.

When it becomes obvious later that the estimates were wrong
the tax bill should be adjusted.

Personal income and taxes don't involve estimates,
you know how much you made last year.

Insurer-Cut 'Hurricane' Hits

""A piece of a company cannot go bankrupt.""

You reveal your ignorance.

Financials Likely in Dead Cat Bounce, But Fed's Now a Wildcard

flatman has a good point,
they see now that a person with rotten credit who puts 40% down
has the same default rate as an excellent credit who puts 0% down.

FICO and the banks didn't think along those lines.

Basically I think the problem is that if someone at an ibank
comes up with some new clever idea he can get
million dollar plus bonuses.
If the idea turns out to be toxic it doesn't hurt him.

There should be a clawback on the bonuses that
were paid out to these white collar criminals the
last 4-5 years.