icandoitdon

ING Shows How Bank Dismemberment Is Done

i'll do what john was too polite to do.

only an imbicile could defend the structure of the financial services industry in the united states. it's clear to all without an atrophied brain that it was the too big to fail culture that would have bankrupted the entire system had the federal reserve and treasury not both guaranteed private debt and turned on the printing presses 24/7 to prevent it. the treasury still guarantees the debt of many of these institutions and taxpayers remain on the hook for billions. and nothing about the structure of the financial system has changed. the fed still keeps rates at zero, using those taxpayers smart enough to acquired assets the hard way...through savings...to recapitalize these failed institutions that nearly bankrupted the system through ignorance and greed. and you think they deserve another bite at the apple just because you own a few shares of shitibank.

you're clueless.


On Oct 27 03:40 PM DonFurio wrote:

> Hey idiot author, the gov't is up big on C because they own the common
> at around 2.60 a share. C will pay the gov't back in full if they
> give them time. TARP was supposed to be for 3 years and then it got
> more punitive, but it's barely been 1 year and all you crazies are
> trying to blow up everything now in the name of "punishment" or in
> author's case because he's short. C is not expected to be profitable
> until the middle of next year, but once they get through this period
> they will be profitable, although smaller, but the asset sales will
> have helped them weather the storm and the stock will have risen
> from 4 now to 12-15 by 2012.
>
> There is a plan for AIG. Some of their strongest insurance companies
> will been spon-off and have an IPO. Others will be sold as the market
> comes back in a few years. In the end, the gov't will make a profit
> on the pref stock they bought in the financials which will be way
> more than they will be able to say about GM and Chr.

What Do We Need In 2009? More Failure

the u.s. financial system is a house of cards...a ponzi scheme based on cheap and plentiful credit. instead of acknowledging that as a tragic flaw, both the federal reserve and the treasury are embracing it because they perceive the alternative...which is massive failures and global depression...to be much worse. it would, of course, be worse in the short run, hence they do the one thing they are good at...shoveling more money and cheap credit into the system to prop it up. in doing so, they are inhibiting a healthier, more stable financial system to emerge from the wreckage.

federal efforts to prop up our dysfunctional financial system have merely delayed the inevitable. it is encouraging that banks and consumers have so far refused to play along with their ponzi scheme. capital-constrained banks have gotten religion and won't lend to consumers and/or commercial borrowers who are risky credits in the midst of a declining economy; and those financially healthy enough to borrow neither need or want the credit when returns on incremental borrowing are uncertain, i.e. why buy a house when prices are declining and jobs are disappearing, and why build a new plant in the face of weakening demand for virtually all products and services?. both are acting rationally, in contrast to the fed and the treasury, whose actions are directly contrary to the long term interests of the country.

let it burn.

Options Trader: Friday Outlook

34CD77:

i don't want to put words in your mouth but i infer from your stated views that you think LEH BSC, AIG, and perhaps CFC and WM, were fundamentally sound businesses, driven to bankruptcy (or near bankruptcy) by hedge fund shorting. if you believe this you must also believe that the u.s. government has been suckered by a bunch of hedge funds, since they're needlessly spending $1trillion or so to bail out these sound business. call me stupid but thats pretty hard to swallow.

shorting is not the root of the problem here. the problem is overleveraged investment banks and bad credit. shorts forced the issue to the surface sooner than investors or the government wanted to recognize it.

It's Time For a U.S. Sovereign Investment Fund

hwood007....

the collapse of FNM/FRE was a symptom...not a cause of the broader financial collapse, which is a work-in-progress because of a critically overleveraged financial system in both the consumer and commercial sectors of our economy. the overleveraging occurred because of too many years of cheap and plentiful credit made available by the dysfunctional policies of both our elected officials...republican and democrat...and their appointed proxies.

if you want to defend the role republicans played in this disaster, have at it if you can. you can start with that great republican "free-marketeer" alan greenspan, a reagan appointee, who never met a bailout or adjustable rate mortgage he didn't like, and never made an interest rate cut that he didn't defend, no matter how many economists say it was indefensible of him to push the fed funds rate to 1% and hold it there in the aftermath of 9/11. then there is dick cheny who contributed his knowledge of economics by saying that "deficits don't matter." then there is george bush who adopted the reagan mantra that "government regulation is the problem, not the solution." until now, that is. and then there's the republican candidate for prez, good ole boy "deregulation john mc cain," who early in the week opined that the economy is "fundamentally sound" but changed his mind when advisers told him that if he couldn't come up with anything more intelligent than that he would talk himself right out of the white house. now i guess he thinks the economy is in the shitter. no kidding. and anyone who thinks it's over because of this proposed taxpayer bailout is absolutely clueless.

wake up.

Options Trader: Friday Outlook

the ban applies to financial stocks only...not nonfinancials. this ban on short sales could last a long time. at the earliest it will be lifted only after goldman and morgan stanley fina merger partners. but if the market continues to decline after the dust on this bailout plan settles, look for a ban on short sales of all stocks.

take nothing for granted. they have proven that they will do anything...anything...... bail out wall street from it's own greed and stupidity.

Options Trader: Friday Outlook

" I have been giving similar rants on the other side for months as I was blaming the short sellers/hyenas for wrecking the financials and causing the crisis in the first place."

how ignorant.

It's Time For a U.S. Sovereign Investment Fund

clinton's been out of office 8 years, "spud." get over it. this disaster occurred on george bush's watch.

The Harder They Fall - Cramer's Mad Money (9/15/08)

yes, cramer can and does say anything....including ignorant claptrap.

anyone who watches this fool much less take his advise doesn't understand investing.

The Harder They Fall - Cramer's Mad Money (9/15/08)

that CNBC keeps this idiot on amazes me. i've been a regular of the bloomberg network, which has in depth interviews and commentaries with real analysts...not clowns.

Lehman Bankrupt, Merrill Swallowed, AIG Wilting: What It All Means

ozcutty2 you are correct on BAC why they bought merrill in the face of a bankruptcy proceeding by LEH i can't fathom. Ken Lewis stated that if they had waited to get it cheaper the opportunity might disappear. hello???? the firm was in meltdown!!

lewis also states that he wasn't "pressured" into buying MER. i wonder. how much due diligence could they have done in the 24 hours or so it took to put this deal together?

i think BAC will be a survivor and based on the premise that MER has been pretty aggressive in getting rid of lousy assets and raising capital, i sold some BAC puts late today at the 17 1/2 and 20 strikes but i'll be quick to exit the position or hedge it if BAC continues to sell off. trust nobody...least of all the CEO of a financial firm.

Lehman Bankrupt, Merrill Swallowed, AIG Wilting: What It All Means

good grief.

it's utterly embarrassing to hear cries for federal help from overleveraged wall street firms and their polyanish shareholders who couldn't recognize a sell signal if it bit them in the a**. those who beg the loudest are usually the same ones who rail against government regulation of private enterprise.

i think the republic can withstand the loss of lehman. what it can't withstand is the coddling by our government of private enterprises that use excessive leverage to magnify returns during periods of boom while shoveling losses from excess leverage onto taxpayers during periods of bust.

Welcome to Desolation Row

the roots of this crisis go far back...probably a consequence of the fear that the great depression would be repeated unless the government created backstops, which it did with its creation and expansion of social programs through the years. but domestic spending wasn't the sole culprit. we have military bases in well over 100 countries around the world and have fought long, expensive and dubious (at best) wars on borrowed money for which we got absolutely nothing in return, wasting money, lives and our reputation as the "leader" of the free world. some leader we've proven to be...relying on china, japan, russia and mideast oil sheiks to finance both our lifestyle and our military. ain't we grand?

but it was the federal reserve and the regulatory agencies responsible for the stability of our financial system who pushed us over the edge. from the early days of his tenure, after paul volker broke the back of inflation of the late 1970s and 80s greenspan saw cheap and plentiful credit as a panacea for every problem that crossed the financial landscape and thereby laid the ground work for its financial collapse. he utterly ignored the build up of leverage within the financial system. when the danger became apparent even to laymen, bernake tried to mitigate the fallout with the same snake oil used by greenspan, and he's now gone him one better by creating taxpayer liability for the mistakes of private enterprise. in the name of "saving the financial system" of course. his band aid approach has saved nothing because the system he and others helped construct was build on a foundation of cheap money and excess leverage that is in the process of crumbling. thats how it should be.

Positive Analyst Call Should Give AIG a Lift

you only missed it by $2.30-2.80 or around 10%. but i admire your courage.

Oil and Financials Bring Stocks Down, Again

and what, boys and girls, would we expect boone pickens to say? that oil prices are being by a weak currency, artificially low interest rates and the prospect of supply threats caused by the constant threat of supply disruptions by the u.s. government's penchant for starting wars they can't finish? i don't think so.

when actul gasoline shortages develop in the market i'll believe that there is not enough supply to meet demand. until then it's a speculative run.