CM in MA

U.S. Government's Plan for Banks - Ready, Fire, Aim

Timmy G knows precisely what he's doing and is being quite transparent about it. Obfuscation is the desired result. Reality becomes what the government says it is. Pretty simple, really. Success (or victory) can be declared based on yet to be defined outcomes. Enough loopholes will exist for anything to be explained away. This surprises anyone? Here's some free advice regarding portfolio construction and bank stocks: buy something else!

I'll side with Warren Buffett on this one, if I can't understand it I won't buy it. And I can't understand banks, that's for sure. Throw in a Dirty Harry approach (that one must know their limitations), and bank stocks become radioactive for me. I guess I won't be able to brag about how I scored on C, BAC, WFC, etc. But at least I might be able to buy myself a six-pack to enjoy.

Good luck, and good hunting!

TARP Accountability: Bankers Say 'What, Me Sorry?'

TARP means you never have to say you're sorry. Ought to be set to music.

The Current Market Atmosphere: Easy Money Hard to Come by

Interesting article, but forming any opinion, thesis or course of action on "facts" such as "the median wage-earner is unable to afford the median priced home" is fraught with danger. I glanced at the study and am fairly certain it is using national medians. Well, we don't live in a median world. Wealth and earning power tends to cluster. Those earning at or below the national median wage in a high-wage area will likely find themselves consistently priced out of the local real estate market where most homes will tend to run above the median house price. Conversely, a person earning at or above the median wage in a low-wage area will be able to afford a home at the upper end of what is likely to be a below median priced housing market.

Facts and data only have meaning when put in context. And also remember that all studies have biases (yes, even at Harvard) and perhaps even hidden agendas.