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Johann Galt

Johann Galt
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  • Fast Cloud Growth Leads To Dell [View article]
    I believe this is the thesis for Longleaf Mutual Funds' investment in Dell. Interesting article.
    Jan 6, 2012. 01:58 PM | Likes Like |Link to Comment
  • Chatter about an Obama plan for mass mortgage refinancings heats up again, with speculation the President might appoint a "housing advocate" as head of the FHFA, whose current chief has been lukewarm about such an operation. The administration could get their "own man" in there without Senate approval using the same sort of recess appointment just used to install the head of the CFPB.  [View news story]
    Which story- the mortgage story or Jackooo's medical story?

    Or did the White House deny both?
    Jan 5, 2012. 04:47 PM | 2 Likes Like |Link to Comment
  • Brent crude falls off 1% and WTI crude trims 0.6%, seemingly oblivious to a little more squawking from Iran's navy chief about how "easy" it would be for the nation to block the Strait of Hormuz. (previous[View news story]
    If Iran closed the Straits of Hormuz, and wanted to keep it closed, we'd need ground troops to reopen it. He's right- it would be relatively "easy".
    Dec 28, 2011. 09:19 AM | 1 Like Like |Link to Comment
  • Tim Tebow, Social Mood And The Future Of U.S. Stocks [View article]
    Great article, interesting perspective, and I sure hope you are correct for my kid's sake. Or should I say, I "pray" you are correct?
    Dec 19, 2011. 03:18 PM | 1 Like Like |Link to Comment
  • The House approves the $1T omnibus spending bill by a margin of 296-121, sending the bill to the Senate for a likely vote over the weekend. Democrats were viewed by analysts as giving up the most ground over last minute revisions, as the prospect of a government loomed larger. [View news story]
    I think he meant, "the prospect of a larger government loomed."
    Dec 16, 2011. 02:42 PM | Likes Like |Link to Comment
  • Bailout This: PBGC Pension Takeovers [View article]
    Well said, sir- the age of the company pension is, and should be, long gone. Interestingly, AMR pilots had a preview of this possibility. AMR acquired TWA in 2001, and "assimilated" approx 2000 pilots. TWA pilots did not have a pension plan, instead TWA paid a certain percentage into a retirement account managed by the pilot.

    This was because TWA went thru 2 bankruptcies in the '80s, in which the TWA pension obligations went to PBGC, where they were reduced by over 50%, which impacted thousands of retired TWA'ers.

    As a result, TWA pilots never wanted to trust their futures to TWA management, thus a revised retirement package that benefited both TWA and its pilots.

    Of course this option was likely out of the question wrt AMR and the pilot's union, as the union is top-heavy, and a revised retirement system would negatively affect the senior members most.
    Dec 6, 2011. 09:54 AM | 1 Like Like |Link to Comment
  • It's Not Too Late To Sell AMR [View article]
    "One possible positive for the stock could be some sort of buy-out of AMR by another airline possibly U.S Air (LCC), or a foreign carrier. I do not see this as a real possibility because if there was a deal to be made, AMR would have made it."

    -- While I agree with the assessment, it is worthy of consideration that in 2001 AMR acquired TWA shortly after TWA filed bankruptcy. The deal had been rumored for at least a year, but apparently couldn't go down until TWA shed it's debt obligations.

    Just some historical perspective wrt AMR and bankruptcy.
    Dec 6, 2011. 09:46 AM | Likes Like |Link to Comment
  • Income inequality in the U.S. is rising and is now greater than in all developed countries other than Chile, Mexico and Turkey, according to a new OECD report. The average income in the U.S. among the richest 10% is 14x greater than among the poorest 10%, up from 10 to one in the 1980s. Michael Lewis: The gap "isn’t merely unnatural and unsustainable, but, in its way, shameful."  [View news story]
    The OECD report reads like a socialist's report card. American policies have "limited redistributive effect", and the U.S. should "re-examine the redistributive role of taxation." Etc., Etc.

    The U.S. apparently is still the dunce of the Marxist world. Although we're trying to become better socialists.
    Dec 5, 2011. 03:12 PM | 1 Like Like |Link to Comment
  • American Airlines' (AMR -5.1%) board meeting has broken up with no major announcement filed yet. A blog covering the industry from top to bottom reports that AMR employees are bristling with the decisions of current management, begging for a change in a letter sent to the board: "You are the last line of defense. We implore you to make the difficult decisions to remove these executives from the company..."  [View news story]
    I would like a link to where management bonuses totaled $250 million. It sounds improbable. I am not trying to defend management by any stretch, but just sayin'.

    @mysuper80: You can vote your contract down, then wait for the bankruptcy court to make one for you. I'm sure you will get much more favorable terms.

    Disclosure: also an AMR employee
    Nov 17, 2011. 02:22 PM | Likes Like |Link to Comment
  • You Need To Pay Higher Taxes So We Don't Become Greece Or Italy [View article]
    I'm not an economist, but it seems to border on the obvious that one cannot create something from nothing. Thus, the concept of printing money to pay debt, ad infinitum, would seem to violate this simple adage.

    Goes right along with the credo:

    "There's no such thing as a free lunch."
    Nov 15, 2011. 03:50 PM | 3 Likes Like |Link to Comment
  • A Shocking Comparison Of Poverty Levels Between The U.S. And Brazil [View article]
    This is blatantly idiotic. "Poverty" in Brazil means you don't have electricity, or live in a one room hovel, or both.

    In the U.S., the "poverty" stricken have satellite TV, cell phones, and drive SUVs. Just have a drive around the projects to confirm, if you don't believe it.
    Nov 8, 2011. 10:55 AM | 4 Likes Like |Link to Comment
  • Going Flat For Safety [View article]
    What if the market goes sideways? Don't you lose some percentage due to contango on the 3x ETF?
    Oct 21, 2011. 11:34 AM | Likes Like |Link to Comment
  • The Wall Street protesters have been sold a bill of goods, Peter Wallison writes: Reckless government policies, not private greed, brought about the housing bubble and resulting financial crisis. The private financial sector "cannot fairly be accused of causing the crisis when only a small minority of subprime mortgages outstanding in 2008 were the result of that private activity."  [View news story]
    I think that's apples and oranges. The VA loans to veterans in years past is in no way comparable to the loans over the past 15 years pushed and demanded by the federal gov't.
    Oct 12, 2011. 11:14 PM | 1 Like Like |Link to Comment
  • The Wall Street protesters have been sold a bill of goods, Peter Wallison writes: Reckless government policies, not private greed, brought about the housing bubble and resulting financial crisis. The private financial sector "cannot fairly be accused of causing the crisis when only a small minority of subprime mortgages outstanding in 2008 were the result of that private activity."  [View news story]
    Sure, but his Clinton Foundation is worth $100 million. From various countries, including millions from all around the Middle East. I wonder what his wife does?
    Oct 12, 2011. 11:05 PM | 2 Likes Like |Link to Comment
  • Wealthy Americans react harshly to critics, such as the Wall Street protesters, because they "realize, deep down, how morally indefensible their position is," Paul Krugman writes. They "got rich by peddling complex financial schemes that... helped push us into a crisis whose aftereffects continue to blight the lives of tens of millions of their fellow citizens."  [View news story]
    Mr. Blankenhorn,

    You clearly don't run a business. The notion that the regulatory burden is the same now as it was in the past is absurd, and patently false.

    Similarly, I think you confuse "employment at will" and laws allowing workers to collectively bargain. If you have a contract (i.e., a collective bargaining agreement), you are no longer an at-will employee. Under the contractual duties in a CBA, an employee cannot be arbitrarily fired.

    But you contend an entirely different proposition. You propose that everyone has a "right" to their job. This right is not found in the Bill of Rights, but is among those proposed by "progressive" socialists as well as the "right" to a home, a "right" to healthcare, etc. In short, "rights" that must be provided by the government. Just back-door socialism, which philosophy has failed with disastrous results repeatedly.
    Oct 12, 2011. 10:24 AM | 4 Likes Like |Link to Comment