Warm_Paw

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.

Goldman and the Interconnectedness of Banks

The map above is infantile. All banks transact with each other. It's how money circulates. The "general silliness" about Goldman Sachs is a description coming from someone who has never been behind the scenes on anything and is probably living in a climate controlled atmosphere, no where near mainstream America. In every community on this planet, key pillars of the community handle the more important issues of the community and through continuous interaction with each other, they soon learn to streamline and learn to cut red tape until decisions affecting an enviroment are decided over a cup of coffee in a hallway of some large institution. It's the expedient way to get things done.
Soon enough you learn who to talk to and when, to further some goal or course of action that needs to occur or is part of an agenda.
Over time network connections are formed and influence and favors are bartered like attending a flea market.
This is how the ol' Boys network begins and how it can then bloom into something wandering outside the law with larger and more greed based scheming.
To believe people don't conspire - if they didn't work in harmonious cooperation with each other, like the tower of babel, nothing would ever get done. Do they conspire criminally with each other, quite often unwittingly without the knowledge the end game is illegal. But they do conspire and outside of the transparent channels (to cut the red tape) - but the transparency is there to safeguard the law.
Many of the communities have an ol' boys network made of family members, due to nepotism, or of colleagues keeping each other employed. To dismiss conspiracy as silliness outright and across the board displays the mind of a naive person who has never been bought into the circle of trust.
At the higher level of politics in running Goldman Sachs, if a person didn't conspire, they'd never be in the top position.
How does anyone achieve a goal if they don't manipulate their enviroment to get what they want?

Goldman and the Interconnectedness of Banks

Hey Paul...did you color that yourself?!

GE Capital: Next CIT?

It's good to get a source of info that strips away the usual song and dance that all is well and although we're spiralling down, we're spiralling down "less quickly THIS month."
While work has been offhsored to India, China and Mexico, we at home have been living on home equity loans on housing overinflated by empty profits in derivative trading.
Now we take a trillion dollars of tax payer money (the govt's home equity loan) and create a "JOBLESS RECOVERY"
Without jobs, bills don't get paid. Without bills getting paid, the masses cannot consume. Durable goods do not get sold.
It's a real easy concept to grasp.
I realize Obama's been handed this mess, but it's time he realize there was a reason US administrations in years past became protectionist.
Globalization is good...for China, India and Mexico.
Will someone explain how globalization further's the USA's interests? Call me narrow minded, but I'm loyal to the home team. I don't see the visiting team jumping in and handing the USA a large bailout to stabilize it's economy. Hell, Asia hasn't let the US sell cars in the east for how long? Some globalization!

Are These Earnings Really Cause for Celebration?

I'm in total agreement.
Not sure who believes this is a good time to buy.
Toxic Assets are still on banks books.
If unwinding them is being deferred, people holding stock will be affected when that unwinding begins.
The argument is that the pace of our spiral downward is easing.
We are still spiralling downward.
Greed never helps one think straight.
This crash is a little bigger than bankrupt hedge funds can revive into a new bubble.

This Advance Will Be Measured in Days, Not Months

My RIMM prediction was posted here on July 10 2009.
The article was :RIMM Proceed with caution.
It's July 17 and a miracle has occurred. RImm's gained $7 a share.
Was it the settlement of a court case where RIMM has agreed to pay $264 million? I could see how that would help share price...
What settlement, when you pay out $264 million, you didn't have a defense.

This Advance Will Be Measured in Days, Not Months

I agree with shorting from here on in.
I'd go as far as saying we're about to see March's lows after AIG reports in August. They should've blipped off the radar after losing what I believe was $700 + dollars a share.
I'd like to know if any of these banks have turned over any of their toxic assets and how long they are allowed to suspend marking them to market???
Phillip Davis had it right in his article "Here we go Again"
10 days ago RIMM was paying a premium of $7 a put at $65 for this strike date. Everyone claimed this was Bearish.
I knew it was bullish for whoever sold the put.
I also knew RIMM would be about $72 today for those puts to expire worthless.
We wonder how Goldman makes 10 billion in trading and 4 billion in actual banking? They have some very accurate traders at a time when markets are a roller coaster ride.
One can only wonder how events seem so well choreographed.

General Electric Company Q1 2009 Earnings Call Transcript

The question is, did the new accounting changes change GE's numbers to look like a positive?
If so, this rally is window dressing.
If just capital is to be marked to market and not earnings, who can trust earnings?
I realize this admin wants to get markets positive to mitigate wind up costs, but my faith will be destroyed finding out this is a flimsy facade, after all this talk of transparency.
What is the truth?