dougnhi

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34 Comments

    • Wed Mar 12th 14:58 PM | Rating: 0 0
      Commented on:
      Fed's Redirection, Not Creation, of Liquidity
      Let's hope the Fed, which is a private bank, ends up having to buy all this garbage debt that it's trading for AAA treasury paper. I couldn't think of a happier ending than the Fed itself being forced to eat it's own dog food. If the Fed ends up crashing and burning over it's own policy of intentionally running up housing prices and fostering an environment of moral hazard and unbridled greed, all the better (and the sooner the better).
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    • Tue Mar 11th 19:25 PM | Rating: 0 0
      Commented on:
      Short Covering Helps Boost Stocks
      This kind of manipulation will come back to haunt in so many subtle ways. For all the folks that think that this was such a clever move by the fed, to swap nearly worthless paper for treasuries, I'm sure you'll regret the day eventually. Moral hazard aside, nobody's balance sheet has been exposed, no bad debts erased, no leverage unwound. It's still a mess, and the only thing that happened today is that Helicopter Ben gave bankers money that they'll turn around and pour into the stock market and commodities. This might temporarily help the market, but it doesn't help housing, interest rates, consumer spending, or prevent Moral Hazard. A sad day regardless of the 400pt swing. People think such short term thoughts...it's no wonder why we're in such a mess. Wake up folks...the fed isn't helping...the fed IS the problem. The games need to stop, the market should correct, and then we'll find out who's solvent and who's not. Until then, it's just a cheap trick.
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    • Mon Feb 25th 13:10 PM | Rating: 0 0
      Commented on:
      Now's Not the Time to Give Up on Stocks
      More bullish comments are great for Bears. No mention of the credit crunch, CDS, ARS, CDOs, public and corporate debt, etc. This is blind optimism at its best. I hope that in a year or two, this forum will repost many of these articles as a public service to help people realize just how silly they were in hoping against hope that the market could stay elevated via leverage and speculation, when what was already happening was retrenchment, unwinding, and a credit crunch for the ages. Folks that can't learn the lessons of the past truely are doomed to repeat the same mistakes over and over. Moral hazard must be purged, excessive risks removed, prices reset, and wild speculation punished via normal market forces. The current round of manipulation to attempt to defy nature and keep the markets levitated will soon enough be over, and then where will all these authors be?
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    • Mon Feb 25th 12:56 PM | Rating: 0 0
      Commented on:
      Options Trader: Monday Outlook
      It's good to see this kind of "spin"....it gives me hope. I say this because I'm convinced the market is in fact in serious trouble. However, as a contrarian, I get worried when too many people join the band wagon. This article's obvious bullish sentiment ignores the most common sense available regarding wild speculation and excess credit which once turned, will lead to forced selling and a much lower market. Until these excesses are purged from the system, and folks learn that there is a true price of excessive risk, we'll continue to have even bigger problems. And for those who feel that we would be better served via massive bailouts, I'd say be careful what you desire. Folks are discounting the importance of learning the lesson of moral hazard in favor of a bailouts, but the price of failure to enforce that lesson will definitely lead to even greater trouble in the future. Let's have the recession, learn the lessons, reset prices to more affordable levels, purge the excesses, and punish some wild speculators. When it's all over, we can move forward again from a clean slate with a better, more transparent market that rewards investment, not leverage and speculation.
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