Gandalf

8 Possible Targets for Exxon's Cash

XOM is in a good position to roll out the distribution of natural gas as vehicle fuel. This makes a CHK buy look promising in the long run and very profitable at current prices.

Good Politics Is Often Bad Economics - Why the Stimulus Plan Won't Work

It sure is better than the "Rape & Pillage Capitalism" of the Bush/GOP fiasco!


On Jan 30 02:08 PM Socialism cannot compete! wrote:

> It's not only poor economics, it's ALSO poor politics!! Even liberals
> have been forced to recognize the pure waste that is in this bill...much
> of it just in there because economic fear gives them an opportunity
> to ram through social engineering spending that would otherwise never
> make it.

Texas Governor: 5k Credit for Plug-In Hybrids to Mollify 'Overzealous' EPA

Texans just don't know how to live in a civilized society. They think they should be able to do every stupid bone-headed thing regardless of its impact on the nation and the world.

Bush proved how bankrupt this arrogant way can be.

At Least 43,000 New Obamaconomy Workers Freed Up

Obamaconomy?

I think the term is misleading. The whole nation is engaged in the biggest POOPER-SCOOPER chain-gang, cleaning up after Bush and the irresponsible GOP congress he milked.

What you are witnessing is the POST-BUSH POOPER-SCOOPER
ECONOMY.

It will take years, if we ever recover. Just remember the source accurately.

Where Citigroup Went Wrong

The end of Glass-Steagle was the end of the retail banks.

The retail banks have always been run by the less adventurous, more cautious and, less elite finance people. Very dull.

The hot-shots went into investment banking and did deals, took risks and ,mostly, made great fortunes. Their mistakes were covered by the ocean of money surrounding them or were born by the stockholders of the companies they took public. A piece of the action, Bonuses, kept them going through brick walls. Homo Economicus.

Along the way, "Due Dilligence" and "Fiduciary Responsibility" were forgotten.

When Glass-Steagall ended, the hot-shots took over the retail guys and raided their deposits in order to do more deals, with more risk and less "due diligence" and little "fiduciary responsibility". Ergo, no one looked inside the mortgage-backed security bundles. They just pushed raw sewage through the pipeline and collected bigger bonuses.

The conservative, risk averse retail guys were gone or neutered by the investment bankers. There was an orgy of risk with no one watching the cumulative impact.

You can blame it on integrity or blame it on the structure of the system but the real blame lies with the folks who killed Glass-Steagall and never watched over the chicken coop.

My Response to Palmisano's Stimulus Plan for IBM

The IBM proposals look reasonable. The benefit of using IBM instead of start-ups is experience, critical mass, risk and integrity. IBM can probably get started quickly and do a good job.

IBM is not perfect but it has distinguished itself as a well managed company with integrity and good business practices.

Still, Obama should get fixed-price contracts for these projects and penalties for late completion. That will keep IBM (and others) honest in these big projects.

Pre-packaged Bankruptcy Is GM's Only Option - Barron's

The depth of the problems faced by the 3 American auto makers requires that all three should go into bankruptcy under a common bankruptcy judge and master in bankruptcy with the objective of rationalizing the research, development, product portfolio, manufacturing, marketing, service/warranty and financing into one global competitive and profitable company. This is something the US taxpayer can invest in. Without this bottom-up rationalization, there is no hope for any one of these failed management organizations.

Even if we still had a healthy investment banking community and a strong economy, this would be a daunting challenge for private capitalism.

Now, it needs to be led by the best experts in Congress, Judiciary, and Administration who have our entire national interest at stake, including return on our investment in this industry.

I am not a big fan of Mitt Romney as a political figure but he may have the best set of skills and relationships to accomplish this enormous task. His father was the head of an American car company and he has led a successful investment company.

If the Obama folks and congress want to reach out to get problems solved, he may be a good choice to lead this critical effort for the future of our country.

Let GM Fail

The depth of the problems faced by the 3 American auto makers requires that all three should go into bankruptcy under a common bankruptcy judge with the objective of rationalizing the research, development, product portfolio, manufacturing, marketing, service/warranty and financing into one competitive and profitable company. This would be worthy of taxpayer investment.

Even if we still had a healthy investment banking community and a strong economy, this would be a daunting challenge for private capitalism.

Now, it needs to be led by the best experts in Congress, Judiciary, and Administration who have our entire national interest at stake, including return on our investment in this industry.

I am not a big fan of Mitt Romney as a political figure but he may have the best set of skills and relationships to accomplish this enormous task. His father was the head of an American car company and he has led a successful investment company.

If the Obama folks and congress want to reach out to get problems solved, he may be a good choice to lead this critical effort for the future of our country.

Automakers: Bailout Arguments, Pro and Con

The depth of the problems faced by the 3 American auto makers requires that all three should go into bankruptcy under a common bankruptcy judge with the objective of rationalizing the research, development, product portfolio, manufacturing, marketing, service/warranty and financing into one competitive and profitable company.

Even if we still had a healthy investment banking community and a strong economy, this would be a daunting challenge for private capitalism.

Now, it needs to be led by the best experts in Congress, Judiciary, and Administration who have our entire national interest at stake, including return on our investment in this industry.

I am not a big fan of Mitt Romney as a political figure but he may have the best set of skills and relationships to accomplish this enormous task. His father was the head of an American car company and he has led a successful investment company.

If the Obama folks and congress want to reach out to get problems solved, he may be a good choice to lead this critical effort for the future of our country.

China's Shrewd Long-Term Oil Plan: What America Can Learn

We must get our economy off of imported energy before we go bankrupt and China and the OPEC states own us. They will be in a position to pick up the pieces of our failed (non-existent) energy policy at 1% on the dollar. We are heading toward 30% now.

What ever happened at those "secret" Cheney energy policy meetings?

Were they so mesmerized by the Bush/Cheney/Rummy/Wolf...
IRAQ BS that they failed to secure our real national interests???

BP CEO: Three Oil Myths

When OPEC starts to price oil in EUROs, we will see the real extent of our lack of strategic planning to generate more energy independent of oil and gas.

The alternatives have been mostly ignored by government policy and investment compared with their long-term critical importance.

Not only are we setting ourselves up for energy starvation and bankruptcy, we are ignoring the opportunity to become leaders in the new energy technologies, jobs and profitable investments which the entire world will need in the near future.

We need to transform our economy to generate more GDP$$$
using much less oil/gas. This is an immediate strategy thrust which will require a "Marshall Plan" or a "Moon Shot" level of priority.

Our economic/political system in which entrenched interests seek to forestall their inevitable decline with subsidy treatment has been a major source in our nation's failure to achieve real progress in many areas. In our myopia, we have also failed to notice that other nation's have moved ahead of us in many areas.

We need to think globally and act in our own interests as a nation, rather than to adopt the policies of the entrenched interests who spend so freely in D.C. to maintain their living standards by compromising ours.

35 Stocks That Ben Graham Would Like Here

Graham, Dodd & Cottle + Roger F.Murray would add a quality of management component to these metrics, such as the ability to accurately predict and control EPS. I don't think there was much management forecasting back in their days.

A company with good management systems and controls has great value to the investor. The banks failed this BIG TIME. I think their focus on "retail" banking was at the expense of the required focus on due dilligence in their investments. I think many bank managers do not understand the investment side of their business and this had led to a massive corruption of the capital markets.

BP Could Lose $20 Billion to Gazprom

Anyone who thinks that Gazprom shareholders will get a benefit from the take-over from BP is kidding themselves.

Gazprom is not operated for the benefit of shareholders, it is a creature of the Russian Gov't which will find a way to reap the benefits before the shareholders do. Buy Gazprom at your peril!

Potash as Ash Can

More people, higher per-capita income, more & better food will
drive agriculture - seeds, fertilizers, pesticides, herbicides, farm equipment - will all do very well in the long-term. Near-term the market is very volatile because of the financial markets and their possible impact on per-capita income. This is a bump in the road for the global economy. Everyone wants to enjoy good food and most will work hard for it. Modern farming technologies will be applied to satisfy the rapidly increasing demand for the forseeable future.

Goldman's $200 Oil Call and the Hurricane Premium Theory

What's $12 Billion a month on IRAQ when you are $9 TRILLION in debt???

The "Bush/Cheney Economy" will persist for a generation, no matter who wins the next election. The USA has ceased to be a capitalist economy. The capital is now in the hands of foreigners who know how to save. Now they will wait until they can bottom-fish.

The US Government will no longer be able to tell China(and others) not to invest in American companies because this will be tantamount to suspending the convertability of the Dollar and lead to a useless $$$currency faster than current policies. This will prompt most to insist in payment in EUROS in order to protect themselves from our monetizing the US Federal Debt with emergency
monetary and fiscal bailouts of firms who don't know the meaning of "due dilligence".