MudEngineer

Does True Competition Among Credit Card Issuers Exist?

The fact that most credit card companies are losing money right now has much more to do with their stupidity on who they gave credit cards to and the fact that currently about 10% of their poorly chosen customers are defaulting on their credit card debts. Some due to unemployment and some due to greatly excessive debt load.

Their losses are not due to excessive competition!


On Sep 17 03:06 PM It Figures wrote:

> The most transparent and objective measure of competition in an industry
> is the profitability of the participants. Sustained above average
> profitability is a sign of lack of competition - think drug companies
> in the '80's and '90's, or MSFT a decade ago.
>
> Given that most credit card issuers are losing money right now,
> and have for the last year or so, it is hard to characterize the
> sector as lacking competition in any economic sense.
>
> Folks would benefit from trying to separate their personal "beefs"
> with these companies from their economic/investment analysis

Comex Silver - Another Bubble or Desperation?

By CTFC definition then, the big banks are Speculators. How is it legal for a large bank to be short 10's of thousands of future contracts using taxpayer TARP money? They are truly a pathetic bunch of criminals.


On Sep 15 01:34 PM kohalakid wrote:

> The writer of this article clearly doesn't understand what a Commercial
> Trader is. A Commercial Trader is, by COMEX and CFTC definition,
> a dealer/broker who uses the futures market to hedge their position.
> They don't try to "keep a lid" on the market. They try to hedge their
> price risk.
>
>
> oy vey.....

U.S. vs. China: Has Trade War Begun?

Additional proof that somewhere in Kenya a village is missing their idiot. This man has not done a single thing right yet since he stole the office of President by using the vile ACORN and SEIU groups with major contributions by the media not doing any real investagational reporting on Obama's history including where the man was born.


On Sep 14 06:42 AM CautiousInvestor wrote:

> This decision was based upon the 2012 elections; not economics. Hostage
> to the interests of organized labor, Obama seriously miscalculated
> and made an issue out of a non issue, exposing a smoldering tinderbox
> to a flash point and the escalation of a trade war.
>
> The timing could not have been worse: our borrowing needs are high
> and our dependence upon China is well established and, secondly,
> with a depreciating currency expanding exports is an increasingly
> viable platform for growth if the world's economy gains traction.
> There are growing protectionist sentiments across the world; this
> could easily be something larger than a spat between two giants.
>
>
> Furthermore, most of the tires imported by China are what the industry
> refer to as third tier replacement tires; US manufacturers, based
> here and in China, have no interest whatsoever in producing these
> low margin tires. Accordingly, US manufacturers do not support the
> tariff.
>
> This craven and intellectually stunted decision will, in addition
> to risking a trade war, simply transfer production of these tires
> to another low cost producer; raise replacement tire costs; hurt
> those in the business of distributing and retailing replacement tires;
> hurt consumers; and NOT produce more jobs in the industry.
>
> The decision is impossibly stupid, inspired only by a desire to placate
> organized labor and fails to take into account risks and our broader
> national interests. Once again, special interests trump national
> interests.

The Coming Consequences of Banking Fraud

If you know what is going to happen in advance and you then get all of your already huge holdings in cash, gold or silver, you can buy up ten times more wealth after you either cause the crash or just let it happen. Now, do you still think the rich would have nothing to gain from a crash. It would give them much more power and incredibly more wealth! Now do you still think we are stupid?


On Sep 09 12:28 PM Mrudula Shah wrote:

> It's equally stupid to think that the western democratic system and
> the political leaders and all major bank executives are out to get
> the ordinary citizens and drag the economy down!! Tell me how these
> oligarchs and political leaders benefit if the economy collapses!!
> No body, including each one of them, benefits!! I Do not think these
> guys are that stupid and are taking some stupid steps!! Stupid are
> those who believe those who say the world is about to collapse!!
> Also, I am not saying Mr. Kim is a Chinese - I am just saying he
> expresses Pro-China anti-Western thoughts!! It's clear to me that
> with Americans cutting down heavily on their consumption habits and
> moving towards more savings (because theyt may be concerned with
> their social security and medicare syastems health), the Chinese,
> Japanese and Korean economiies are hurting!!

The Five Worst Bailouts

And you can't fix "stupid" which is what all these greedy bankers were. I told my boss back in 2005 that all of these new types of mortgage loans with little or nothing down would end very badly. Why weren't all these supposedly smart bankers smart enough to see what I saw?

On Sep 06 03:34 PM RECESSIONPROOF wrote:

> bail outs dont work, you cant cure the dead

Capitol Bancorp: Likely to Go Bankrupt

Reggie, you have found a quite a few short candidates in the financial realm. Unfortunately, I am no longer willing to establish a short position in any stock. Twice in the last month, I have been forcibly required to buy back my short positions by the broker. One stock before it settled, which I accepted because they said they could not find stock to borrow. The second one was about 5 weeks after I shorted Capital One, obviously well the after settlement date. The broker, Scottrade bought the shares back for me with no fore warning whatsoever. Said that they could no longer borrow shares for my already long established short positon. They caused me to lock in a $2600 loss just as the stock was starting to go back down.

Has anyone out there ever had this happen to them?

Sugar: It's Like AIG, Except We Actually Need It

Actually, sugar is something that everyone would be much better off without. I suspect that in addition to the poor growing conditions elsewhere, sugar consumption is also rising. Sugar gives people a temporary good feeling is a time when everything is so damn depressing!

This statement is something coming from someone who has 200 acres of sugarcane, huh?

Was Paulson Right?

So the Government made 4 billion dollars on the TARP funds so far. Big deal, they have to collect the rest of the money loaned out before we will know if there will be an actual profit. I suspect that the Government will never see so much as one third of the money that went to GM and Chrysler and will most likely never see one cent back from the 182 billion that went to AIG. This is like saying your are ahead because you were able to recover a few chickens and some eggs after a pack of wolves broke in and devoured most of the chickens. Crappy accounting indeed!

The Dollar Must Decline for the Market to Rise

Look at the really big picture of how much debt the U.S. and the world have accrued. Have patience on any new purchases, as this huge credit bubble built up over at least 20 years unwinds; all material things will plummet in price. Wait, keep your money in cash or safest possible thing next to cash and you'll be able to buy 4 condos in the future and rent them all out for great income.

Cars always depreciate, never a good investment; but later on if you want to buy two or three you will have the cash for those too.


On Aug 24 02:22 PM Andy1234 wrote:

> a devalued dollar also favors those who hold a large amount of debt.
> I just purchased a condo with the first time homebuyers $8K.....and
> for the first time am in debt. I have a feeling inflation will run
> strong....I have lots of investments in reits (canada) and oil companies
> that pay dividends, with smaller speculative (but earning money)
> oil, NG, gold stocks. I will continue to play it this way. I am just
> debating if I should buy another condo, or buy a nice car...or something....as
> my investments will continue to increase....and my dividends continue
> to get larger.

Celebrating the 'Recovery': I'm Disgusted

Poor Bernanke, now he will get to preside over the greatest deflation (depression) to occur in over two hundred years. Man, what an honor to have kept that job. He will soon be regretting that he accepted his reappointment.


On Aug 25 10:43 AM Northstar10000 wrote:

> Obma just said he will reappoint Big Buck Ben. Guess he wants to
> be sure the helicopter squad will be ready without skipping a beat.
>
> All Hell Pilots stand by.

Colonial Bank Failure Highlights the Problem

The fact that "prime borrowers" are now losing their homes should scare the hell out of you. Anyone with half a brain (except of course for the bankers) could have seen that sub-prime people could not and would not pay their mortgages. But the banks loaned out the money due to Government edict (Barney Frank and company) and then found a way to offload most of the mess onto the public by securitizing the mortagages and selling them.

Now, with unemployment rising, probably more rapidly than we are being told, even the prime borrowers are losing their homes. Next, the Alt-A and liar loans about to start resetting will cause an even bigger wave of foreclosures. Does anyone else see Wave 3 down for the market about to start?


On Aug 24 11:11 AM enigmaman wrote:

> Isnt that what banks are doing with their bad real estate assets,
> by delaying foreclosures they can show the asset at values they prefer
> rather then what the true foreclosure market would dictate. As a
> result we are then told foreclosures are slowing which is received
> as positive by the market when in fact as a result we really dont
> know how bad foreclosures really might be, when you read that prime
> borrowers are foreclosing at a rate higher then subprime you cant
> really get a grip on the true impact because bank reports do not
> reflect reality

Colonial Bank Failure Highlights the Problem

Are you talking about the same military that has all sworn to uphold the Constitution of the United States of America. You actually believe that the military would turn around and trash the Constitution and go against their fellow Americans because some political clown told them to. NOT!

The hundred million people with guns are just about to the point of Hell no, we won't take it anymore. They just need a General to direct them in their clean up work.


On Aug 24 12:18 AM igropub wrote:

> If they own the politicians, they also own the military. Individual
> Americans' muskets will be no match for the training and armament
> of the US military. Marshall law will prevail in turbulent times
> ahead, not the billion or so guns you refer to.

Expect Upward Moves for Oil and Silver

Actually get everyone you know who feels the same to get registered to vote and then make sure that they do. It worked for the Marxist scumbag now in office so why not for us. If they pass the law legalizing all the illegal aliens, even our mobilizing voters may not be enough. Make sure you all let Washington know that you do not want any kind of amnesty for illegals or we may be screwed.

If the government didn't keep us all fighting against each other, we could actually vote out every last one of those overspending scumbags and start over with fresh people who agree upfront to a single term in office. Wouldn't that be refreshing?


On Aug 22 01:12 PM HA65MPH wrote:

> Our Govt. is a cesspool !...it stinks to high HEAVEN !...The corruption
> is very Blatant...How can we Revolt ???...

The Disconnect Between Oil and Natural Gas Prices

Good luck with your long position in oil. I hope that it is not held in commodity futures contracts. The stock market will fall first, then oil will fall and the Dollar will go up out of fear. Other nations markets will follow or even lead as China's stock market has fallen 20% already.

The stock market and oil charts may even look like they fell off of cliff. Demand is way, way down and the economy sucks and will only get worse due to a huge continuing credit contraction.


On Aug 23 11:14 AM ManAboutDallas wrote:

> A plunge in the price of oil? Give your head a shake. How does
> something plunge in price when its supply is decreasing [read: Peak
> Oil] while its demand is inexorably increasing [read: BRIC countries'
> rising demand curve].
>
> Time to stop thinking the world starts at the Statue of Liberty and
> ends at the Golden Gate Bridge.
>
> Couple that with the aberration that oil is still priced in US$,
> declining in value daily now, and about to collapse altogether, and
> the only direction oil is going is.... up.
>
> Sorry if this spoils your lovely, deluded Sunday.

The Disconnect Between Oil and Natural Gas Prices

The below thinking is correct. If I were still trading commodities for a living as I did in the past, I would short an equal BTU equivalent of oil and go long an equal BTU equivalent of nat gas. Pretty low risk trade based on the oil/nat gas ratio. Oil will come back down and nat gas may move back up slightly, unfortunately for me as I work on oil rigs in the Gulf. Albeit not very much so far this year and it is looking like my work situation will only get worse along with the economy.


On Aug 23 09:58 AM logicalthought wrote:

> No one hear has raised the possibility that a large portion of this
> discrepancy will be resolved by a plunge in the price of oil. Oil's
> recent rebound was driven not by the fundamental supply-demand equation,
> but by speculation (much of which is well deserved) against the U.S.
> dollar. However, if the dollar rebounds a bit (something which is
> likely to happen just because no one seems to think it will), oil
> could very swiftly return the the $30s or even lower.