Warm_Paw

Banks Scramble to Refinance Their Long-Term Debt

For our commentators.
If you dislike the reality of the situation, don't pick on the messenger.
I want to continue to be informed.
Positive news always makes me say "Yeah Right"
Negative news is hard to deliver, so it carries more weight in truth, in my opinion.
Bottom line is - there has been no transparency on where the banks are in ridding themselves of their toxic assets. The fact is, that is the heart of the crisis so just to go into denial on the subject did not make the problem go away.
The govt does not have another $700 billion to throw at this and it hasn't mitigated the damages because the banks have refused to write down the toxic assets in trying to put a positive spin on earnings. So toxic assets are still there, Fed dumping money into market has created Fed Bubble.
When Fed runs out of money - bubble gets pricked.
Banks who then can't get funding will fall like dominos.

U.S. Handling of Financial Crisis - A Less Optimistic View

I for one am not blaming Obama for this mess. It began in 1999 2000.
The problem is, Obama's been handed the problem and is listening to the people who created this problem and are lining their pockets on his presidency. Half of the bailout money was handed out pre Obama leaving Obama holding the bag in handing out the other half.
There's no way one wins a presidential election and can be up to speed with the finances of the country.
Bush handed Obama a time bomb.
The problem I have is that Obama continues down the path of his own destruction by not getting his own people, or even expert advice on what is occurring. He's relying on the crooks who did this to inform him. A fox watching the henhouse.
Even yet the people who are responsible for this systemic risk, fight regulation. Guess why that is?
Obama should let whatever institution that took the risk, fail.
Strong institutions are there to pickup business from the risk takers.
No one knows what the result would have been had these institutions had not been bailed out.
They've been bailed out and the average citizen is not enjoying any signifigant change because of that. Just the banks are enjoying survival at the expense of the tax payer.
A naive president believes everything everyone tells him when it offends the senses.
The emporer is wearing no clothes.

Geithner to Blame for Outrageous Goldman Bonuses

Goldman claiming they're a bank when they're not a bank, isn't that fraud?

Too Big to Fail - Even Greenspan Is Speaking Out

Goldman Sachs runs the United States of America.
Obama's just this token black guy puppet.
I think Obama's coming to realize that.
When the REAL power says SHIT! he comes slidin'

The Dow: Ominous Parallels to the 1929-1930 Era

I couldn't finish the article.
It wasn't making sense to me.
Past performance is no indication of future performance.
I will say this, the truth about banks and AIG has been suspended.
As long as transparency is deferred, the market will chug higher.
But the truth will come out and then the picture won't be so rosy.
As for AIG, the only reason it's still trading is the Fed.
It's the Feds way of using tax dollars to insure the Credit Default Swaps. Is AIG still a company that earns money - NO.
At this point in time - with the banking system broking - I can only wonder how the DOW is around 9500?
It should be at 5000 and that's being generous. It's probably the influx of govt stimulus floating the market.
No one has a clue what earnings are anymore, if not suspended, earnings are being skewed by accounting changes.
Until the smoke and mirrors susbside, an investor is on a slippery slope putting their money in. No matter what you buy, should the truth surface, you will lose.

Should the Government Profit from the Bailout?

AIG at $45 a share is a long way away from returning govt money.
AIG is toast.
AIG is also a critical component - the bottleneck - in keeping big banks alive. AIG comes good on their CDS insurance, big banks survive.
AIG afterall, was insane enough to write insurance on these Swaps believing what goes up would never come down.
The govt doesn't want to run AIG , nor does the govt care if it survives.
AIG is just the easiest and most organized way to contain the destruction of the major banks.
AIG will never come back to life. When you sell off the key components of your business, income is diminished, not increased.
The govt is keeping AIG alive so the sell off isn't a fire sale and some value can be derived from the company.
The people investing in AIG or short term, looking for profit in the middle of a hurricane. They understand the risk. They have their mouse on the sell button and will pull the trigger when poop hits the fan. But as long as the govt is handing AIG money, there isn't going to be any poop and it's cream on the cake that investors buy in to help the govt prop the company up, until it's time for last rites.
The risk takers are trying to time the profit taking on bailing before the idiot investor pulls the trigger. It's interesting to watch what will happen but no one should expect AIG to just return to being some vibrant cash cow chugging along with a money making machine.
It's on life support and once it serves it's purpose, that plug's getting pulled.

Why Is Obama Timid About AIG?

Has the sub prime mess been choreographed so the Govt can buy at the bottom and ride these institutions back to glory and bring the country back into a surplus in time to have money for massive pension funding?
The SEC should investigate...
They're so thorough and strong.

67 Stocks Returning 50%+ This Past Month

These stocks lose a thousand percent and once in the single digit range, they gain 50%. Sounds like a positive trend to me.
As for Sirius Radio.
We've had free radio since it was invented, who in their right mind thinks the majority of people will pay for it?
People who do pay for it remind me of people who pay $3 a half quart for bottled water packaged in Mexico.
Tap water is actually regulated and healthier.

Six Things to Learn from the Financial Crisis

I don't think the average investor understands how serious our situation is. To invest right now will become a loss that one will not recover from in their life time.
As for diversification or leverage, this is a time where you get your money OUT of the market. You'll get a good deal when blood is running in the streets which isn't far off. October I figure.
But of course you can write articles like this is 1986 and all is well.
This is a different world where all is not going to end well.

Banking Bailouts by Other Means

The truth emerges just as cream rises.
You can keep shaking the milk, but the minute you quit shaking, the cream begins to rise.
The govt may be shaking like hell, but they can't shake forever.
CNBC has lost it's reassuring tone that all is well and green shoots are everywhere.
A 200 point drop in an hour has put some shrill in their ever manic voices.
They can keep telling us "it's alright" but the public knows the truth.
The number $500 billion is the amount of the next wave of stimulus.
The worst of this mess plays itself out in 2011, when Option ARMS come due in the highest volume yet.
We should have buried these banks and moved on. Built on their ruins.
The markets destroy wealth as preperation for the creation of new wealth. New wealth in areas we logically have demand. We now subsidize car companies that still don't get the picture.
GM no longer builds a pick up truck that has a manual transmission.
It's long been a fact that manual transmissions are more fuel efficient and ecologically friendly.
GM deserves it's fate.
The Chev Volt is a $40,000 vehicle. Anyone at GM realize the country is going bankrupt. The heady days of credit one didn't deserve have come and gone.
The people at the upper levels have lived in delusion for far too long.

Time to Read the Riot Act to AIG

AIG is worthless.
The govt's leaving the shysters to see how much they can boost it's share price so they can get some tax payer dollars back.
The govt doesn't want to be investigated by the SEC for artificially inflating AIG's share price.
Better to let those who are good at it, work their magic.
Leave the greedy public taking a hit.

AIG Is Dead, Long Live AIG

The irony is, this is the kind of thing the SEC SHOULD investigate.
I lay the chances of that at ZERO.
This is politics.
The sudden surge in share price is why I'm off to invest in my own business and not someone elses.
What company is a GOOD company (as Warren Buffet refers to them) when ANY company can be manipulated at ANY time for gain or loss. Wall St.'s a crap shoot. Vegas is more stable. At least you have a chance in black jack when the dealer isn't palming the cards.
Smart money isn't on the sidelines, smart money isn't even watching the game anymore.
Capital markets were for growing companies that produced something. Employed someone. Capital markets are one large PONZI scheme now.

AIG Is Dead, Long Live AIG

These companies are being dangled to Joe Greed who is going to get stuck taking the hit once the Fed gets their money back plus some.
Does AIG still have outstanding claims from insuring Credit Default Swaps? Maybe this is a short term way to generate claims payment for some troubled banks without the Fed having to contribute more money. Let the public think there's some value left, let them bid it up in their ignorance and use the capital to pay outstanding claims and save a few more banks. If this is so - there's another hit coming due to mortgages coming due.
Mortgages reset mid November in large volume.
There wasn't just sub prime - there was ALT A and Option ARM as well. Hell prime mortgages are taking a hit now. No work.
So investing in AIG is like a ponzi scheme where someone is going to get burned in the end. The question would be "WHEN?" if you were greedy and liked risk... LOL

When Goldman Might Have Failed

If the taxpayer is to be ultimately responsible for the excesses of institutions like Goldman Sachs, shouldn't there be a nationwide vote or referendum given to the tax payer's to decide if they choose to bail the institution out.
The public is then aware of the economic fallout to themselves should a large financial institution affect them adversely.
What right does any elected administration have to just decide for the masses, this action must be performed. The fact it was done in haste and not well thought out shows that this kind of surprise is the way to get something you want when the result is unfavorable to people picking up the tab. It's a lawyer "tactic"
I'm sure it's the fastest thing that's ever went through congress.
Yes there's systemic risk allowing big banks to fail, but adding a trillion to the deficit is of equal systemic risk.
Goldman Sach's has audacity talking bonus' for their employees like they've all done something worth recognizing them for.
The bonuses are another example of the greed and the skimming of profit off the top of their money making machine.
When Obama took office he should have looked hard and long at the people pushing this bail out plan upon him. The fact Paulson got it started to make sure it would be completed and completed by a new admin displays evidence repercussions will be coming down the pipe and the Obama administration will be sharing in the blame.
It's a conflict of interest for Paulson to have been employed by Goldman before making such a decision.
Paulson ceremoniously dumps all his GS shares before performing this feat, nice way to cover his ass in the event the plan doesn't get passed.
Nothing as big as the stimulus should have ever went anywhere without much thought and consideration. A study by economic professors was warranted.
As for Goldman Sachs, Wells Fargo could have expanded and administered to the new business generated by Goldman's fallout.
This was politics, not heroism.

$10 Trillion in Wall Street Aid and No Investigations?

This is exactly how the sub prime mess should be viewed.
It's almost two years of financial collapse and no one's written such an article.
Geithner deludes himself thinking sideline money is just going to come poring in. People have turned their backs on Wall Street.
Better odds in Vegas. More honest people too!