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Microsoft and Apple: Follower and Leader

Good article.

One minus in apple laptops is price. For better specs a windows laptop costs less 30%, a huge difference. Like you wrote, most people grow up using windows. Although, ipod and iphone have made heads turn. Nokia, etc. still hold major market share.

It would be interesting should apple take a lower end or compete on price route instead of its premium only strategy.

Restoring Balance to the Economy

What a load of BS! Apart from the first sentence, the rest of the article is nothing more then ranting.

The world is in trouble, so all types of economy and social order is dealing with very similar issues. The rich have lost a most in absolute terms. Poverty can only be permanently cure by education and hard work. And not by handouts. Governments are the worst people to spend our money.

Previous comment on regulation or lack of it was and is a main issue that's needs to be dealt with.

Two Ways to Restart Small-Business Lending

Totally agree with analysis of the situation of the SME, however the ones I know are also struggling to get orders hence also high risk of default.

Obsessing About Global Bank Stocks in the Post-Lehman World

Given the severity and globally spread of the situation its no surprise that all major bank stocks are following the same pattern. Although, European countries, being more socialist inclined, can more easily nationalize their banks.

Also, no banks to do business with, nor major organization for that major if discounting government backed companies.

C and BAC have probably reached their support levels, unless another AIG happens.

Financials Getting Slaughtered

What is driving the markets down? Has much changed since November? Is the market reacting to O's attempt to manage the crisis through dynamic duo Larry and Tim, now also in charge saving the auto industry.

European banks doing better then expected, US banks' CEO say Jan was good, so why the drop?

Why Bank Nationalization Will Never Happen

Failure of the biggies would mean no company is safe. Given the current sentiments everyone will be holding cash or gold. Too many people, pensions, etc., will be wiped out. Great great depression!

Foreclosure Moratoriums: It's Time to Get Real

In 2001, I did exactly that - rented my flat out as I could afford the mortgages after loosing my job. With the interest also falling, I was able to make difference in rental income and mortgage and keep until 2008, when I should my property for 30% face value profit. Off course I moved into a much cheaper apartment and still live there now.

As an alternative, why don't the banks spin of the mortgages into asset company/ vehicle and sell shares in open market. Similar to REIT vehicle. I am sure their will be buyers if interest /dividends are good. This way the mortgages can be extended to longer period, income from IPO can be used to readderess some of foreclosures, turn mortgages in rentals, recapitalise the banks, etc. Much better then let mortgages sit on balance sheets, don't re-arrange loans to more affordable repayment levels and wait it out.

Markets Plummet as Hope Evaporates

So true! Disappointed when I heard L Summers and T Geithner were being appointed. Change - of leader, more of the same.

Why Do We Need Banks at All?

Banks are safe - your deposits are protected. Essence of a RETAIL bank is take deposit and lend out money, split the interest. Banks are regulated more so then any other industry.

Supervision and regulation are the first failure when the system get into trouble.

The use of mortgage agents (or any type of agent) which is a major weakness in the system. Agents gain from transactions, so they will circumvent rules to get the deals done.

Poor credit control is also evidence in this crisis.

Slice and dice, securitisation, of loans are done by INVESTMENT banks. Securitisation is done for other products such as insurance, with purpose of decreasing risks of default for a share of the interest. Used properly securitisation adds to health of the bank since it is offloading the risks.

CDS is also critical as it insures against counter party risks. Failure to control the miss use of the CDS is major cause of the crisis.

Other services such brokerage, remittance, etc. are also highly regulated.

Low interest rates and cheap money is major cause of this crisis.

What the Treasury Plan Needs: Price Discovery, Writedowns and More

Some points in your article...

...TG was the Fed Governor at NYC so he is in mix of things from the start - one month in the job excuse doesn't cut it.;
...Obama made the mistake of picking TG if he didn't understand the current problems or have a solution to propose at his job interview;
...markets were disappoint on what he DIDN'T say as oppose to what he said as the expectation were built up by his boss - urgency, action, otherwise, etc. instead we got more time is needed and some vague framework which was already known.

Obama and Geithner: Hoping for the Best, Or Wishful Thinking?

Totally agree! The root of the current problem needs to be faced and dealt with one way or another. The root cause over leverage, living on credit, cheap money, etc. needs to not be repeated - no more low interest rates. Unfortunately, the exact opposite is being proposed and followed. Over 3 million lost their jobs and more, many are facing are on their way, will people start spending because of a tax break here and there?

What is so sad is the miss opportunity to really solve the problem, people are loosing their jobs and homes, and the outlook is bleak. Is this not the time to realize looses and put together GOOD BANKS!?

On Feb 11 08:59 PM prudentinvestor wrote:

> A good first step would be to candidly acknowledge that there are
> real losses, they are massive, they will not magically disappear,
> and that someone will pay for them.
>
> The next step is to decide, then declare, who will pay for them,
> whether it is the banks' investors (stock and bond holders); or the
> workers amongst the general public, through taxes; or the savers
> amongst the general public, through inflation; or some combination
> thereof.
>
> All attempts to pretend otherwise is wishful thinking, and the market
> understands this reality.

Geithner has accused China of manipulating the yuan, and this week IMF chief Dominique Strauss-Kahn said it's 'common knowledge' that the yuan was undervalued. You would assume such strong claims were backed by solid proof - but the evidence is, in fact, mixed. Meanwhile, Foreign Policy tells Tim to hold his tongue.

Doesn't all countries country the exchange rates on way or another? Doesn't the interest rate, treasury issuance, etc. have a significant impact on the exchange rate? So should America fix their interest rates and treasury amount?

FT's Martin Wolf asks: Has Barack Obama’s presidency already failed?

I wouldn't go as far to failed, but surprised when nominated people like Larry Summers and Tim Geithner as this does not say "CHANGE". Tim was part of the decision to let LEH to fail which added gas to the fire. Ex-LEH has made good money. Also, the strategy is to prolong the issue in hope that it will get better on its own.

No major surprises in Geithner's Financial Stability Plan, what with all the pre-speech leaks. Still, with speech now over, stocks continue to move lower - which Kathy Lien attributes to Geithner's apparent lack of confidence in the initiative. DJIA now -3.7% to 7967.

Wrong man for the job! He was involved with the initial TARP and it didn't work. We someone fresh and not involved with previous measures.

Visa Rally May Be Short Lived

In the long run this is great company and I've made some serious money after its IPO. But, this global recession (or depression) is severe. Cost cutting is great, but no new business means no new growth. Overseas markets are seeing growth, but will their default rates increase in turn reduces credit hence hamper new transactions?