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mikebrah » Comments » C

  • While Citigroup Jumps on John Paulson's Investment, AIG Jumps on Anything [View article]
    But even if they are government backed, that doesn't make them a good investment. It just means they won't go to zero, right? It does NOT make them any more profitable so the buying spree still doesn't make sense.

    I've said this before, but simply NOT going bankrupt doesn't make these stocks a good investment. At some point people will realize they are paying virtually infinity PEs for these "zombies" and the silliness will stop. OK, so BAC is not going bankrupt. Fine. That fact alone doesn't make it worth $156B which is the current market price.

    Most "bull" arguments I read essentially come down to this: yeah, I know its all BS, but I don't want to miss it and I'll just get out before it gets bad!

    Not exactly what I would call sound.

    MM
    Aug 28 11:20 am |Rating: +4 0 |Link to Comment
  • Freedom of Information Act Disclosure Busts Paulson, Geithner, Bair [View article]
    Too bad the Mafia couldn't print their own money. Their methods of extortion seemed more noble than our government's.

    MM
    May 14 09:57 am |Rating: +5 -3 |Link to Comment
  • Credit Card Losses Are the New Bad Mortgages [View article]
    Mark, you sound like you are on the cusp of capitulating. Hang in there a little longer, bro. Eventually nature wins.

    MM
    May 11 18:12 pm |Rating: +6 -1 |Link to Comment
  • Do You Believe Borrowing Leads to Prosperity? (Part 2) [View article]
    "Personally, I want to be financially secure rather than appear to be financially secure."

    Amen.

    User353372:
    TIME FOR AN INTERVENTION!

    MM
    May 07 10:50 am |Rating: +15 -5 |Link to Comment
  • Why This Rally Is Unsustainable [View article]
    Jasper,

    "It is the hallmark of irrationality to react badly to reality."

    Great sentence!
    May 01 17:00 pm |Rating: +16 -4 |Link to Comment
  • Betting on the Big Banks [View article]
    This is one of the more asinine statements I've read...no offense Perry.

    But regardless of how any individual feels about any individual financial company's health, the indisputable reality is that there WAS a credit bubble. We are in the midst of the popping, and in the history of bubbles no participant EVER returns to their bubble valuations.

    I wholeheartedly agree that over the next 3 or 5 years many financial companies will provide excellent returns. But only to those investors who paid an appropriate price, and whether that is today or in another year I don't know.

    Just like in the tech bubble collapse of 2000-2002 there were handsome opportunities for those investors willing and able to differentiate between AMZN and EBAY and the "UsedPetDealer.com's" of the tech world. There will be those same types of opportunities in the current environment.

    But the essential element of a bubble is that valuations become based on PROJECTED data that turns out to be very far from reality. The $500B market caps you refer to were a result of projections based on unsound and unsustainable business models.

    The result of this credit bubble will be a general reduction in credit, and without a rapidly expanding level of credit these banks' growth will be retarded. The winners (those with minimal participation in the bubble) will swoop in and pick up good assets on the cheap and the losers will cease to exist.

    MM


    On Apr 22 09:30 AM Perry1961 wrote:

    > B of A and Merrill had a combined market cap north of $500B before
    > the recession. Is there any reason BAC can't surpass that once the
    > recession ends? Fed funds have never been this low. With 10% of the
    > country's bank deposits,and Americans saving more than they have
    > in decades,BAC is going to make a fortune next year. When loan loss
    > provisions go into reverse,BAC will head to $80+.
    Apr 22 14:56 pm |Rating: +2 -1 |Link to Comment
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