j4thelonghaul

Fifth Third Eyes FDIC Deals

So BB&T's acquistion of Colonial ($22.0 Billion in assets) isn't on your list of an acquirer of a failed institution?

Congress Needs a Course in Remedial Finance

In my career it is rare that I have met lawyers that make good business decisions. I bet there are very few in Congress that possess a business mind. I am confounded as to why they have asked the business community for help. Didn't Microsoft want to get into banking? Didn't Wal-mart want to do that as well? Has anyone talked to those guys? They sure have lots of cash!

Friday Outlook: Bulls in Charge?

So with the GE earnings miss along with AA and others to come it doesn't appear likely that the DJIA can possibly make a new high and confirm the new high in the DJTA. I am asking, without the help of GE how possibly can we believe that the market will make new highs in the next 6-12 months? I just don't see a reason to own a broad base of stocks. Am I missing something?

Fed too Little, too Late?

Gosh Larry you sound like a Democrat! Bernanke is doing a great job of handling this mess. He is dealing with the liquidity issue first since none of the other "investment banks" are stepping up and handling the problem of raising capital for a mess that they created. Let's remember, it has never been the Fed's job to bail out investment banks!

While this site is dominated by traders who focus on market theme for short time profit, none of you are focusing on the new theme. The new theme is clearly that the government has the power to tax, regulate and force action or face the consequences. The last thing that the Fed and Congress need to do is start making bids on CDOs and other exotic mortgage securities in the marketplace. That will force the hands of some of these greedy investment houses that want a taxpayer bailout to fund their lavish lifestyles!

The Bear Necessities: Law of the Jungle Rules

rnairb - I said they shouldn't have been bailed out but if they are going to get bailed out (since that is the news and the fact of the day) the entire street needs to be examined and new laws will need to be passed.

Wall Street certainly had no problem raising billions to pave the way for LBOs and mergers and workers at companies were the main target of the acquirers cuts. So since Wall Street isn't able or isn't willing to save itself and requires the help of the taxpayer there needs to be a new sheriff in town. Wall Street now wants to play with my money - other than what I have invested myself.

First it was insider trading in the 1980s, next it was deception with tech stock offerings and locked up thinly traded shares in the 90s and now this subprime mess. So over 25 or more years the Street's track record hasn't been real good.

I am a believer in America and capitalism and we will get through this mess. But if we all have to suffer for a time to send the message, I am prepared to do that. I don't care about the counterparties (the hedge funds and their wealthy clients). Those guys invested in illiquid instruments as it turns out so they can go to court and fight about why they lost money and who is responsible.

Basically, I expect the other investment banks to step up and figure out a way to attract capital to work through this mess. If they can't do it, then we don't need them.

The Bear Necessities: Law of the Jungle Rules

Bear was in trouble in the 1980s and 1990s. It has been a poorly run firm for a long time. In my opinion the Fed shouldn't have bailed them out. How is it fair that the banking industry deals with regulators like the FDIC and OCC and are scrutinized and dictated to as to how they make loans? The playing field certainly isn't level for capital formation between banks and investment houses. However, the investment houses got into the business of originating loans (i.e. mortgages) and buying them for their own account. No one was looking at the quality of the borrower's ability to repay or the collateral.

A new unit should be created immediately similiar to the OCC that oversees the quality of the assets held by the likes of Bear Stearns, Goldman Sachs etc. They should be accountable to Congress given that these Capitalist institutions seem to want a tax payer bailout instead of policing and working with each other to preserve the integrity of our financial system.

I hate regulation but if Goldman and Morgan Stanley and all the others aren't going to work with each other to clean up the collective mess they created, then I the taxpayer want some control for my money.

Inflation's Power: The Dollar in 25 Years

Have fun eating and heating your home with gold and silver and oh by the way you better have a mini-arsenal of weapons given the doomsday scenarios all of you are posting. We will adapt and re-emerge as a stronger nation because guys that is what captialism is all about. China and Russia are not capitalism....maybe they evolve but Putin certainly isn't moving in that direction and I doubt the Chineses government is ready to move in that direction either. China will have labor unrest it is just a matter of time. In the meantime the weaker dollar will make business people re-evaluate the cost of production and we will begin producing goods again for domestic and foreign consumption.