Rumpole

Four Things For Investors to Consider and Four Policy Decisions Worth Noting

Jeff, your philosophical points are well taken. But what is a method that correctly prices mortgage securities?? I'm interested to know your version of what is "correct" in this context because the implication is that the free market and current mark to market methods are not.

Switzerland Strengthens Its Banks; Short Interest Remains Low

veni..., is Jessica suggesting that UBS should survive? To me, she's just providing some factual information.
While I share the same sentiment as veni... and mr.g, what I'd like to know is whether veni... and mr.g have acted consistent with their vitriolic words. In other words, have you guys taken out put options, long-dated or otherwise, so you can profit from either or both of UBS or CS demise? Transparency is key in a free market after all (lol)!

Mark-to-Market Accounting Makes Speculators of Us All - And That's Bad

Vernon, I'll admit from the outset that I'm no accountant. But doesn't your article assume that the market is always rational? The market isn't made up exclusively by professional value investors like yourself for whom intrinsic value holds sway. Besides, intrinsic value as a concept has its own set of assumptions which in the current state of things don't seem to be valid to many market participants. Perhaps accounting rules need to show both values, e.g., the mark to market value and the intrinsic value. Of course, companies would have to explain disparities between these items related to each asset and liability.

Of Guarantees and Printing Presses

The extension to five years for the Euro guarantee puzzles me. It's obviously not short-term funding like the overnight markets they have in mind. Could it be all that debt coming due in the next five years? Massively indebted governments guaranteeing massive bank debts... hmmm... there's something rotten in Denmark ... I smell a rather incestuous relationship and it's begetting more an dmore idiots.

The Financial System is Finished

Yes, I'd like it to be finished. But the bankers are going to draw the finish out ever so painfully I'm afraid. Whether they can or not might depend on the reaction to the upcoming LEH CDS settlement as well as the upcoming WAMU CDS auction and settlement. These will happen in the next two to three weeks. So get ready for a turbulent ride and even a crash below what we've already seen. But like I said, the bankers and the governments who are beholden to them will do their damnedness so that they don't crash alon side us. Hmmm...., what's that claptrap in the U.S.Constitution's preamble, something like "....government by, for and of the people...". Utter BS no matter what country one applies it to.

The Guarantee Plan

Felix, how can these countries, which are themselves so deeply in debt, guarantee the debt of their respective banking sectors? And does this guarantee mean, for example, that the UK will help cover French bank debt if for some reason the French government cannot? Also, don't you think if this guarantee is made, the banks will find a way to off-load their debt on to the governments? This doesn't seem like a very good proposition for the taxpayers of the respective countries. yes, it's rather apparent I'm rather cynical, but I think with some reason.

6+ Questions About the Government's Stake In Those Bailed-Out Companies

"...It only works if the federal government
is not asked to pay it off( to China, Russia or Saudi Arabia)...": It seems like America is deathly afraid of China etc. starting to dump its paper on to the market. Wouldn't this be the perfect time for China to lean on this and force the redemption of its U.S. paper in gold?? Quite the way to lighten up the load at Fort Knox!

TSX Trading Strong: Time to Buy Canadian Shares?

I'm a Canadian and, while I'm proud of my people generally speaking and while I'll wave the Maple Leaf loud and proud, you should bear something else in mind. Canada has tied much of its economic future to that of the U.S. And the ties are strong. So as the downturn in the U.S. intensifies, it'll have more and more impact in Canada. And while we haven't entered a housing crisis like the U.S., house prices are softening up here now too. And our levels of consumer indebtedness are not that much different than in the States. But because of their relative conservatism, the Canadian banks are probably more of a safe haven than in the States and elsewhere.

TARP Is Just the Beginning - Barron's

In my view, venividivici has it right.
Isn't the acronym TARP sooo ironic! C'mon boys and girls, let's throw it all under the TARP and maybe all those nasty taxpayers won't notice the mountain beneath.
"...but should be valued with reasonable expectation as to their possible payoffs and risks
in a way that satisfies both investors and auditors...": Jesus Christ, "reasonable expectations" and "possible payoffs and risks", the time for guesswork is over. Especially guessworks that let's the financial sector off the hook and simultaneously gives the taxpayer the shaft up where the sun don't shine.

Bailout Bill Passes; What Happens Now?

In my view, the only effective pressure the American populace can assert in order to regain control over its government is not to pay taxes. yes, this will present some risks. yes, those who advocate for a tax revolt will be threatened, will be labelled as traitors, etc. But it'll be those in authority doing the threatening and labelling. But the time to start this campaign is now, during your presidential and congressional elections. it would of course have to persist beyond this, right up to fiscal year end.
The SEC's alteration of mark to market rules is laughable. Just one more piece of evidence that the game is soooo shamelesslly rigged. Isn't the principle of a "free" market that the market sets the value of a company at any given point in time? Markets aren't entirely rational. But concepts like book value or intrinsic value are based on some idea of rationality. So these concepts go out the window in times of crisis. But that doesn't make the values ascribed by the market in crisis times invalid. But that's exactly what the SEC's intervention and those who support it are saying. But not me.

The Unbearable Lightness of Goldman Sachs

Unfortunately when the repairman went up to patch up the roof, his hammer broke threw the rickety framework to expose a nest of rats living in the attic.

The End of Supervised Entities - Now What About Swaps?

Tell me something, will the $700 billion bailout allow parties whose CDS obligations were triggered by the BSC, AIG, LEH, WAMU or other failures to dump them onto the taxpayer?? If so, I guess Paulson's successor will be back begging for more money from Congress except this time she/he will be prostrate rather than on one knee!

CDS Market Is Shrinking

Will the $700 bilion bailout allow parties whose CDS obligations have been triggered by any of the BSC, WAMU, AIG, LEH or other failures to dump these obligations onto the taxpayer?? If so, then I guess Paulson's successor will likely be back before congress begging for more money, but this time will likely be prostraterather than just on one knee!

Frannie CDS Triggered

Admittedly, I'm a total neophyte here. Can someone explain to what extent, if at all, companies like MBIA etc. and the U.S. and European banks are involved in having to pay out?

Bond Expert: Historic Day Wraps

On the CDS issue, I'm wondering who's going to have to pay out on the default? Might it be MBIA or the like or perhaps a few banks? I figure this could be the beginning of the feared CDS default tsunami.