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    • Wed Oct 1st 22:04 PM | Rating: 0 0
      Commented on:
      Boeing Losers - Cramer's Mad Money (9/25/08)
      BA will be fine.

      How's that WB working for him? He should be writing checks to his viewers now.
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    • Fri Sep 19th 02:43 AM | Rating: 0 0
      Commented on:
      SEC Will Ban Short Selling: America's Leaders Break Down
      How is this any different than Nixon's wage and price controls in the 1970's that led to crushing inflation? How can you have a healthy market if only one side is allowed to trade? I can't even think of a good example that explains how bad this is. Basically, the government is taking over the free market (if it truly exists) and telling every business they can't lower prices to attract buyers. This is going to create yet another artificial bubble that is going to inflate very quickly due to short interest, but when the rule lifted, likely lead to crash of epic size.

      Each solution the Treasury and Fed have come up with this year has been worse than the last. Lowering rates, printing money, creating inflation - and still the markets are locked as they were months ago. Does anyone think this will correct the underlying problems of poorly priced assets and bad debt? No, this is playing with the sticker price only.
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    • Mon Sep 15th 02:57 AM | Rating: 0 0
      Commented on:
      Bank of America / Merrill: Shotgun Marriage
      I don't get it. 2 big reasons.

      1 - Didn't they learn about buying distressed assets after the Countrywide fiasco. Their open bid was at $18 a share for about 25% of the company. Months later, the in for a penny, in for pound theory takes over and they have to buy the rest of the company for about $5 a share or lose the original investment to bankruptcy. Bottom line, they didn't know the exposure. NEVER buy anything if you don't understand the balance sheet and risks hidden within.

      2 - I understand there is little overlap in the businesses, so BoA has largest consumer deposit in the U.S., picked up the largest U.S. mortgage company earlier this year, and this round out the bank with one of the largest investment banks. However, this one stop shop for all things has been tried and has/is failing. Does CITIGROUP come to mind??? Why would they want to round out their bank after that model?

      Only thing that makes sense is the Federal Reserve forced it, after BoA wouldn't be bullied into buying Lehman. All potential buyers wanted a Fed backstop with Lehman and the Fed said no. But that doesn't mean they didn't get some other consessions from the Fed in buying Merrill. Wonder what BoA's value does this week if Merrill has to announce an update of their balance sheet and there are more losses than perviously thought.

      The $29 a share buyout price is pegged to current BoA value which is almost $34 a share. BoA 52 week low was $18.44 and if this merger is a drag like Countrywide, then BoA will certainly drop this week. 10% to 20% wouldn't surprise me. $28.50 for BoA wouldn't surprise me.
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    • Tue Jul 29th 13:48 PM | Rating: 0 0
      Commented on:
      Options Trader: Tuesday Outlook
      Phil enjoy your columns and normally agree you. There two issues with the MER deal that I think you should reconsider.

      "You will hear CNBC et al scream "20 cents on the dollar" all day long."

      About 20 minutes after the market open, Faber was still reading the deal and found that the purchase is being funded 75% by MER. So, the real purchase price is not $6.7 Billion, unless the fund buyer can eventually turn a profit. Otherwise, there is basically a chargeback to MER. At 75% funding, worst case is they could only be getting 5 cents on the dollar. So some of the talking heads are using that number now. Only the bulls are sticking to the 20 cents as a positive spin.

      Second, this isn't the final write-down. This represented $11.1 Billion of CDOs on the books from their last report. Even after last night's purge, they still have $8.8 Billion left, and we know for certain based on the last transaction that it is not worth that much.
      View article »
    • Sat Jul 12th 16:53 PM | Rating: 0 0
      Commented on:
      Who's to Blame for IndyMac's Failure?
      Unless your head was in the sand, everyone knew Indymac was going down. They made their bed years ago by issuing alt-a (liar) loans in California, the biggest real estate bubble in the country. The stock has been a slow motion train wreak for 15 months. When Schumer spoke, the stock was already down to 80 cents. And Schumer caused it. Right.

      Managment is first to blame. They setup this house of cards.

      However, Schumer (who I agree is a world class blow hard), is 100% correct that the regulators should have put an end to the shady business practices long ago. If I fault Schumer for anything, it's why did he wait this long to speak out?

      As for John Reich, just look at his resume. While not a political hack and has plenty of banking experience (not a "hellava job" Brownie, from FEMA guy), he is a Bush appointee. His career was built in the Republican party, having spent 12 years on the staff of Florida Senator Connie Mack and worked his way up to basically chief of staff for his office. He is trying to cover his own a** and defending the boss that appointed his.

      This administration believes in unregulated capitalism and the policy from the top down is to let businesses govern themselves. So agencies have a hands off policy. When businesses are not regulated - those who are reckless, unknowledgeable, or just greedy; will push to get away with whatever they can.
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    • Tue Jun 17th 18:20 PM | Rating: 0 0
      Commented on:
      Options Trader: Tuesday Outlook
      "7 cents a gallon would bankrupt the county?? Are you that stupid??"

      No he's not. It's called sarcasm. In case you don't get that, he also posted a link to the group that did argue that point - The Heritage Foundation. They just might be stupid enough to believe it. Even more likely, is they are just doing their usual, pimping for big business under the guise of protecting conservative ideals (meaning BIG PROFITS FOR BIG BUSINESS, uhhh I mean individual liberty and freedom, yada, yada).
      View article »
    • Sun Mar 16th 16:08 PM | Rating: 0 0
      Commented on:
      Perini Showing Collateral Damage of Tightening Credit and Slowing Economy
      Credit markets are on lockdown. The developer, with Merrill Lynch, Hyatt and other went looking for financing and nothing. Deutsche Bank just annouced they are foreclosing according to 3/15 online Wall Street Journal article. This was down $10, not percent, on just the default notice and with the bank promising payment on completed work. Now how far does it drop now that financing fell through and foreclosure is filed? Low was $26, but the stock has recovered and in fact hit $40 last week.
      View article »
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