hanson001

Wall Street Breakfast: Must-Know News

IBDG (in before doubleguns).

I was starting to get conditioned. Thanks man.

Wall Street Breakfast: Must-Know News

"The question remains whether BofA executives willfully chose to violate securities laws, or received advice from outside counsel" to do so.

Yes the devil made me do it.

Wall Street Breakfast: Must-Know News

"What if AIG is BOTH too big to fail AND too screwed up to succeed ?"

That's what I am thinking axelrod. And this is what worried me when we started all this bailout mess. It is like we have to support a bunch of GMs; entities sucking away resources and giving nothing in return.

Wall Street Breakfast: Must-Know News

"Effective as of July 2010, credit card companies will be able to increase interest rates only on new credit cards and future purchases or advances, rather than on current balances."

Someone carrying a balance on a credit card is not wise, but can you believe that companies can change the interest rates on current balances. I know this is probably stated in the print of the contract that one needs the Hubble Space Telescope to read, but I don't think any rational person would think this should be legal.

If someone has a fixed mortgage, the interest rate doesn't adjust. The interest rate risk is borne on the institution supplying the funds and the person paying the mortgage.

I know we have variable rate mortgages and most credit cards are variable rate cards. But I would be interested to see if interest rates on cards went down on good credit customers balances when the Fed funds rate, or other tracking rate went down. Bet not.

Bad times display character traits like no other. Like Buffet states, when the tide goes out, only then can you see who was naked. As an investor, I like these times, since it allows me to align my long-term investments with companies that display a greater character.

Wall Street Breakfast: Must-Know News

Socialism: The means of producing and distrubuting goods are owned collectively.

Thus bailout equals socialism.

Wall Street Breakfast: Must-Know News

The sad thing is the automakers will probably end up getting your money. With all the socialist in Washington, I see it as a done deal. Thus the pain is prolonged.

There is a GM plant in my town and I know many people that work there. I loved observing their behavior over the years. The arrogance of people with only high school diplomas making almost 30% more than people coming out of college. I told a GM friend (spending and not saving because her job would last a life time) long ago to save her money because the global business model could not support her pay. Like all the other workers there, she looked at me as though I was crazy.

Needless to say, most these workers are forced to vote for what ever communist is running for office. Just like the government workers. Study their pay and pension plans and it will make you sick. You will never get the same set up in the private sector. Then when you need their service you are treated like a an illegal alien.

Bailing out the Big Three will create the same entitlement behavoir you see in the government (federal, state, and local) workers.

Next stop the health care industry. Like the autoworkers, the health care industry needs to wake up to the new paradigm that the people and nation is growing poorer in real terms. In fact, we have been for over a decade. Wealth created with debt is an ignorant game.

Looks like the American people know the deal. They are paid down debt for the first time since 1952. If they would of had a bailout option (no more home equity loans...hehehe) this would not have happened.

Merry Christmas.

Wall Street Breakfast: Must-Know News

For it is written, I will destroy the wisdom of the wise, and will bring to nothing the understanding of the prudent. Where is the wise? where is the scribe? where is the disputer of this world? hath not God made foolish the wisdom of this world?

I Corinthians 1:19-20

Yes sir, over and over again.

Wall Street Breakfast: Must-Know News

notosmart: Why the pride man? The world will follow us down the rat hole. Look at the sovereign wealth funds; they haven't made good on their investments here. Look at all the foreign banks that hold our government paper. This is global, and while our ship is sinking, they are taking on water also.

The Bank of America Bug

If they lay off 7,000 and each had a cost of $38,000 that should free up 266 million. Wondering about that dividend. They have 4.4 billion float and pay out $2.56 per share. Over 11 billion payout. Don't see how they keep the dividend as is.