ResourceWise

29 Comments

    • Citigroup Should Walk Away from Wachovia [view article]
      I think that Wells Fargo has given Citi an opportunity to ‘dodge a bullet’ over their shot-gun engagement with Wachovia. They need to settle for a payment and walk away and focus on their existing global franchise. Prudence not ego will be more useful at this time. Oct 06 05:43 AM
    • How Much Will a Wells-Wachovia Deal Cost Taxpayers? [view article]
      I think that Wells Fargo has given Citi an opportunity to ‘dodge the bullet’ over their shot-gun engagement with Wachovia. They need to settle for a payment and walk away and focus on their existing global franchise. Prudence not ego will be more useful at this time. Oct 06 05:41 AM
    • Batten Down the Hatches: Economic Forecast [view article]
      I agree with DenisL (Oct 5 at 2:12pm). The mortgage related credit derivatives market is a small part of the total market where lack of clarity of ownership and responsibility is all pervasive. It is necessary for this massive 'can of worms' to be dealt with. If in the process house prices fall to affordable levels and stock values actually represent the worth of the companies - that should be acceptable to all champions of the free market. Public money is better spent on investment in the crumbling infrastructure and in promoting alternative energy solutions. Jobs will follow the money. Oct 06 05:17 AM
    • Credit Crisis Sharpens Anger Over CEO Pay [view article]
      I like the argument that you have presented though I don’t agree with the remedies. Capping salaries and benefits, and/or deploying punitive taxes will not only destroy innovation and enterprise, but will also stoke corruption – misuse of corporate resources. However the current system is rotten to the core, where insiders pick the pockets of the public and call it capitalism! It needs some serious decontamination.

      A fresh regulatory framework that creates transparency for all players in the markets is an absolute necessity. Congress needs to invest some quality time in building a new integrated framework as well as creating an independent regulator that has authority over all market participants. They also need to coordinate regulatory efforts with rest of the world to minimize arbitrage.

      Meanwhile as the system deleverages, we’ll just have to grit our teeth and keep our fingers crossed.

      Oct 06 04:58 AM
    • Citi Examines Its Carrots and Sticks [view article]
      Citi has been presented with an excellent opportunity to cash out the deal and focus on its own current sprawling global franchise. There is huge value it can unlock for the shareholder by managing the existing franchise effectively – without getting bogged down in additional remedial portfolios. Citi, please quit while you’re ahead! Oct 04 11:32 AM
    • The U.S. Shouldn't Pay Ransom to Wall Street [view article]
      Tom, I agree with your approach. It is incredible that the US government is contemplating the option of pouring copious quantities of fuel on the fire raging at Wall Street. A cold shower i.e. insistence that the books of all players be open to inspection by federal authorities so that transparency can be increased in the markets – may be a better solution. This reduction of uncertainty will help stabilize the markets – perhaps at a short term loss of 500-600 points on the Dow, which may not be a bad place to be. Oct 02 12:30 PM
    • The Cost of Putting Expedience Before Justice [view article]
      Steve, that is a very thoughtful view. Implementing a solution for an ill-defined problem reduces its chances of success. But I guess gambling is the best way to bail out a casino! Oct 02 11:43 AM
    • The "Heads I Win, Tails You Lose" Bailout Bargain [view article]
      Wall Street is driving the agenda, so speed is trumping common sense. It is surprising that sets of alternatives have not been presented to the law makers by the Treasury, Fed and SEC, explaining the upside and downside of each set of alternatives. This would allow decisions/votes on the basis of informed choice rather than a ‘gun to the head’. It would be useful to first put in place some mechanisms that promote transparency before pouring $700 billion onto a gambling table with loaded dice. Only regulated banks, who fully and openly report all their debt holding should be allowed to participate in the solution. This will keep out the shadow players who are there to make a quick buck rather that help alleviate the credit crisis. Oct 02 11:24 AM
    • Fear and Greed: Premise for Capitulation and Overreaction [view article]
      The financial markets must serve society in a manner that minimizes the chances of an economic Chernobyl. In its current form the markets are a collection of camouflaged time bombs that can be triggered off by any intelligent fool that has access to it – including the hedge funds and private equity funds that aren’t regulated but can play in the market and destroy value to create wealth for themselves. Their licence to steal needs to be revoked. There is a huge ocean of debt (estimated by some at $7.5 Trillion!) whose toxicity is still unknown. Unfortunately the same players and entities that are center stage in the bailout are now being empowered by society to fix the problem. I think the rules of the game need to be re-written and brutally enforced so that greed can be tempered by fear, rather than feeding on it. Oct 02 09:25 AM
    • Do Paulson and Bernanke Really Understand What's Going On? [view article]
      When I heard the Paulson-Bernanke-Cox deposition before the Senate Banking Committee yesterday, I did get a sense that they were not taking a multi-pronged approach to the challenge at hand. So Jason's perspective is a useful addition to the picture. I suspect that the Treasury et al are finding it difficult to put all their cards on the table, so we're probably seeing a fraction of the picture. I would vote for an equity infusion provided the respective banks open their books to the government and provide them with an accurate description of their 'current state' with a credible action plan to navigate their way ahead over the next 36 months. The equity infusion they receive will depend on the 'perceived value' of their current situation and the credibility of their 'corrective action plan'. Doing anything less would just mean throwing good money after bad. Sep 24 10:53 AM
    • Bring Back the Uptick Rule [view article]
      CLH, the market works?! Surely you're kidding?!!! The market is a stacked deck, a loaded dice, a mugs game and needs a thorough review so that the theft of shareholder value is made harder. Sep 19 03:48 PM
    • SEC Will Ban Short Selling: America's Leaders Break Down [view article]
      Bill please explain the value that short sellers bring to the market. Investors provide capital for production of goods and services, what exactly do short sellers provide? Sep 19 02:50 PM
    • More of a Witch Hunt Than a Solution [view article]
      The US is facing a financial emergency - a raging wildfire that is out of control - due to decades of living beyond means. Short sellers seem to be adding to the problem so a temporary ban is not such a bad idea. Extreme circumstances require extreme solutions. Sep 19 02:20 PM
    • Short Ban: Government Policy Created Too Hastily [view article]
      The ban is temporary to give the government some breathing space and fight the fires without them being further fuelled by short sellers. I hope they're banned until a coherent case can be made for the value they add to the well being of the marketplace. Sep 19 02:13 PM
    • Are Short Sellers Really to Blame? [view article]
      Mr Lee it would be more useful if you shared your insights on the value added by short sellers to the marketplace. As of now it seems to me that they add 'fuel to fire' and profit from 'making a killing', so I'm pleased that they have been finally reigned in by the regulators - albeit temporarily. Please make the case for Short Selling. Sep 19 02:05 PM
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