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  • Why The Market Is Valuing Nvidia Incorrectly [View article]
    My guess would be that they are holding mortgage backed securities in order to get a slightly higher rate of return on their cash. Many financial institutions are doing the same thing because government bond rates are so low.
    May 9, 2012. 10:08 AM | 2 Likes Like |Link to Comment
  • 3 Developments That Can Unleash Cisco's Value [View article]
    Thanks for providing citations in your article. It is always helpful to have assertions backed with documentation.
    Jun 13, 2011. 01:24 PM | 3 Likes Like |Link to Comment
  • Fiscally Irresponsible Friday: Trading for Magic Beans [View article]
    Ok, I'll start. Eliminate the Department of Education. We managed to put a man on the moon without it. Education is fundamentally a local issue and even if a case could be made for Washington's involvement, how can we expect an agency in a distant city to administer effectively to thousands of school districts around the country. Education spending is just another way for liberals/democrats to posture about how much more they care than anyone else. Since the inception of the Department of Education, education funding has increased, the cost of higher education has increased and the overall performance of American students has decreased. So, why should we keep this failing agency?

    So let the carping begin about how kmne68 is a stupid short-sighted fool who doesn't care about the children. Go ahead.
    Dec 20, 2010. 05:51 PM | 2 Likes Like |Link to Comment
  • The True Meaning of Protectionism [View article]
    "...the upcoming stimulus package could be used help return America to her pre-1980s position of industrial superiority..."

    As I recall, the 1970s (which is pre 1980s) saw the U.S. automobile manufacturer's reeling because of foreign imports. The decline of the Amercan electronics endustry had begun by then too. As a child I remember " Japanese junk..." as a common phrase to describe all manner of imported goods. In time, that phrase was replaced with " Taiwanese junk..." and the Japanese came to be recognized as excellent manufacturers of electronics and automobiles. Now, the Taiwanese and Koreans have become manufacturers of decent goods (electronic and otherwise) and have handed off the manufacture of "cheap junk" to the Chinese who are improving rapidly.

    These Asian companies and populations have evolved. Americans I would argue have regressed.

    Don't blame globalization for the problems American manufacturers face. Blame an apathetic public that permits recalcitrant teacher's unions and trade unions to lower the bar in schools and the workplace. Meanwhile, Americans lured by the Siren song of creeping socialism, look always toward someone else (namely government) to improve their lot, rather than at themselves.
    Feb 8, 2009. 12:29 PM | 2 Likes Like |Link to Comment
  • Adding Up the White House Pay Freeze [View article]
    Silly symbolism pure and simple.
    Jan 24, 2009. 02:49 PM | Likes Like |Link to Comment
  • When Stocks Go to Zero [View article]
    There seem to be values all over the place but with limited funds I am not sure which apple to pick.

    Anyone see a problem with just dollar cost averaging into an index ETF over the next few months/years so that whent the tide does come in I am ready?
    Nov 22, 2008. 01:37 PM | Likes Like |Link to Comment
  • Dow in Secular Bear Market When Priced in Ounces of Gold [View article]

    Can you set aside your Bush Derangement Syndrome long enough to realize that monetary policy is set by the Federal Reserve and not by the president?

    As for your list of things contributing to our supposed decline (I would suggest you snap out of it and realize we are the U.S. not Europe and we do not succumb to "decline"), it is worth pointing out that a weaker dollar does make our exports cheaper. Not a reason to devalue the currency but you'll live longer if you look for silver linings.

    Free trade does promote world economic growth. To deny this is to deny reality and common sense. Did you build your own car? house? computer? telephone? No, you traded with someone who knew how to do it more efficiently than you. Why would you shut yourself off from other achievers, regardless of what country they achieve in?

    Uhm, low interest rates do promote domestic economic growth. They also lead to a weaker currency. The truth of one doesn't negate the other.

    Budget deficits may not matter, so long as the borrowing is for something worthwhile. An endless war on poverty (aka Great Society) and paternalistic war on personal responsibility (aka New Deal) are not worth borrowing for. Yet most of our federal budget deficit could be wiped out if the Federal government stopped trying to be the man of every house in the country.

    Would you rather fight the terrorists at home? Really? Frankly, I am glad Iraq is acting like a big ole terrorist magnet, pulling all manner of Islamic extremist into the giant meat grinder that is the United States Military. You probably haven't heard (or maybe you are invested in defeat so you didn't want to hear) that our guys are winning over there.

    You can keep blaming Bush for your perceived problems. It isn't going to make you anything but bitter.
    Jul 5, 2008. 03:44 PM | Likes Like |Link to Comment
  • A Demographic Headwind for the U.S. Dollar [View article]
    Immigration is our best hope. Let's keep it legal and bring on the Mexicans, Indians and Chinese. It would help Europe too if they would make the islamic extremists conform to western standards rather than bowing to the Sharia-bound masses.
    Jul 4, 2008. 01:43 PM | Likes Like |Link to Comment
  • What Was Left Out of the Jobs Report [View article]
    The cynicism and negativity here floors me. How do you people make it through the day? I would be suicidal with your collective outlook.
    Jul 4, 2008. 01:30 PM | Likes Like |Link to Comment
  • Worst Dow June Since Depression [View article]
    I am so utterly sick of people spinning this economy as "Worst since the Great Depression..." Democrats and the media did the same thing in 1992 trying to get Clinton elected. Now they do it for their latest darling.

    Unemployment remains low.
    Growth, though slow, continues.
    Interest rates remain favorable for growth.
    International growth remains strong.

    Sure, the dollar is weak and oil is high but those are flip sides of the same coin. Credit policy is confounded by the subprime mortgage mess. These are temporary conditions--certainly not worthy of the doom spouted by these nattering nabobs of negativism.

    Frankly the dollar is oversold relative to the strength of U.S. growth potential, particularly vis a vis the Eurozone.

    Oil is looking like a near bubble and is priced based on distant supply\demand expectations which are rarely realistic when formed in such an environment.

    Huff and puff about depression and recession long enough and you'll be sure to get it. Don't let a maniacal hatred of George Bush cause you to root against the U.S.
    Jun 28, 2008. 03:31 PM | Likes Like |Link to Comment
  • Inflation Triangle Dilemma: Dollar / Oil / Euro [View article]
    People are worrying needlessly over all this. The thing about markets is that they correct themselves. They do it better if pointy-headed bureaucrats stay out of the way, which isn't likely to happen.

    When oil gets too expensive, the combination of increased production and reduced demand will bring it back out of the stratosphere. This will happen very quickly once the traders see that the upside potential is smaller than the downside. Ahmedinijad's grip in Iran is not terribly strong and once he is gone his yo-yo-like manipulation of oil prices will fade. Other crises will come and go but that has been the case in the Middle East for the better part of a century. There is talk of reducing government energy subsidies for consumers in Asia. Reduced consumption caused by even a modest slow-down in China/India would take significant wind from the speculator's sails.

    Once the oil bubble breaks, it is likely to stay broken for some time. The high price now is stimulating oil exporters to spend lavishly. In other words, they are becoming accustomed to big incomes. When the price falls, they will have no choice but to pump more to maintain the spending levels to which they are becoming accustomed. OPEC members will bicker back and forth over who is over-pumping. We have seen this before.

    Market forces will likewise find the appropriate value relationship of the Dollar/Euro. The long-term fundamentals underpinning the Euro are weak relative to those supporting the Dollar. The inherent strength of the U.S. system relative to that of continental Europe makes Euros a long-term loser, despite the near term support afforded by a weak dollar. Certain EU member nations are in no position to weather higher interest rates. Fissures will erupt, putting the unified currency and the member governments under pressure. The relative strength of the well-integrated U.S. economy will lend strength to the dollar, mitigating somewhat the effects of oil prices and interest rates.
    Jun 9, 2008. 07:54 PM | Likes Like |Link to Comment
  • Energy: Government Vs. Market Solutions [View article]
    This article is right on the money. Speculators are the reason oil prices are rising but speculators are acting on a real imbalance between supply and demand. Until that supply/demand equation comes back into balance, prices will be high.

    How is that rebalancing accomplished? You can either increase supply or decrease demand or some combination of the two. Government "solutions" invariably ignore free-market principles and in fact exacerbate the problem by artificially stimulating demand and discouraging expansion of the supply.

    Punishing oil companies with windfall profits taxes or elimnation of subsidies may feel good, but it doesn't do a thing to increase the supply of oil and in fact, by reducing the cash flow of the oil companies, reduces exploration/extraction activities. So this government "solution" actually reduces supply, therby throwing supply/demand further out of whack.

    Price caps at the pump artificially stimulate demand, thereby perpetuating the imbalance between supply and demand. Any sort of "relief" offered to the consumer is going to have the same effect. High prices reduce or eliminate "unnecessary" consumption, thereby relieving pressure on prices.

    It sounds harsh but market forces are the best solution to the problem. Goverment interference promises to make it worse, while presenting new opportunities for corruption as favored and out of favor industries vie for special treatment from the regulators.

    My eight year old son understands this stuff. Too bad the politicians don't.
    Jun 7, 2008. 02:49 PM | Likes Like |Link to Comment
  • Preparing for the Fall [View article]
    What a bunch of sour pusses. Gyrations happen. In most of the turmoil, it is the "small" investors that are the stalwarts to whom "buy and hold" actually means something. It is the "expert" money managers worried about quarterly comparisons that are constantly jumping in and out.

    The biggest problem we face is the falling dollar. The glory of the market is that sooner or later, corrections happen. Take any money you need in the next six to twelve months out of the market to protect it and let the rest ride. Don't try to time it, just stay diversified and rest easy. Things may get ugglier. So what? We've been through this sort of stuff before. We'll get through it again.

    Finally, don't trust a Press that is desperate to see their candidate win this Fall. They will do all they can to make people feel like they are reliving the Great Depression. They did it for Clinton 16 years ago, they tried to do it for Kerry in '04 and they will do it for Obama this year.
    Jun 7, 2008. 02:00 PM | Likes Like |Link to Comment