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  • 2009 Outlook and Beyond: Let Truth Be Your Guide [View article]
    Re: "We will as a society dine out less, watch less movies, purchase less goods, but this does not mean a reduction of happiness."

    Unless you are employed in one of those industries that depend on those expenditures.
    Dec 28 07:11 PM | Likes Like |Link to Comment
  • John Hussman: Buying Near the Bottom [View article]

    You said: "While we do expect fourth-quarter GDP to come in at a loss of -4% to -6%, it is important to recognize that this is a quarterly change at an annual rate."

    I have no idea what that means. Surely not the quarterly change multiplied by four?

    What is wrong with using the year over year number?
    Dec 8 09:03 PM | Likes Like |Link to Comment
  • Long Term Fundamental Value of Stocks Smoother Than Prices [View article]
    Dec 2 08:25 AM | Likes Like |Link to Comment
  • Long Term Fundamental Value of Stocks Smoother Than Prices [View article]
    Jolly Rancher


    You said "Right now Exxon pays more taxes than all US citizens combined. That can't continue."

    For the record, Exxon paid $29.864,000 in taxes for 2007.

    Individual taxpayers paid $1,335,441,437.

    In fact the total for all corporations was only $395,535,825.

    Too much talk radio, I suppose.
    Dec 1 08:52 PM | 2 Likes Like |Link to Comment
  • Last Thursday Was the Bottom - It's Time to Get Back in [View article]
    Why is it that in a bear market, so many try to call the bottom?

    Yet in a bull market, so few try to call the top?

    One of life's mysteries, I guess.
    Nov 30 08:31 PM | 1 Like Like |Link to Comment
  • Consumer Inflation Falls More than Expected [View article]
    Perusing a calendar and using my inner-city public school education, I conclude that the elapsed time from August 29 to October 31 is actually only two months, not the three mentioned in the article.

    Also, no mention is made of how the annualized percentages are calculated and somehow those numbers seem suspect. Some clarification is in order.
    Nov 20 10:12 AM | Likes Like |Link to Comment
  • 3 Signs of a Near-Term Market Advance [View article]
    Where do you suppose that $3 trillion in cash came from?

    Not from investors selling their stocks since for every seller who now has cash, there was a buyer who now doesn't have an equal amount of cash. No net change.

    Not from new money generated from savings. $3 trillion represents more than 20 per cent of U.S. GDP of something less than $14 trillion. The U.S. is not a nation of savers.

    Not from foreign government reserves. That money is already committed to treasuries or other investments, U.S. or otherwise.

    So, where did it come from? And when it enters the market, won't an equal amount exit? Buyer Mort's cash now becomes seller Mert's cash. Again, no net change.

    Nov 3 11:55 AM | 1 Like Like |Link to Comment
  • Why the Price Dividend Ratio Is Better Than the P/E Ratio [View article]
    Over the last 12 months, the Diamonds ETF (DIA) has paid dividends of $3.021. Today DIA is roughly $90 so that would make the ratio 29.8.

    Oct 13 02:19 PM | Likes Like |Link to Comment
  • Last Week Was Dow's Worst Ever [View article]
    Re: "First 1000+ point high/low swing in the DJIA's history."

    Acutually it was the first 1000+ point low/high swing in the DJIA's history.

    The low happened first.
    Oct 12 04:08 PM | Likes Like |Link to Comment
  • A Magic Multiplier? [View article]
    You make it seem so simple. Just like the tax cuts and stimulus package seven years ago would bring us to prosperity and actually increase government revenue.

    Now $4 TRILLION in deficits later, lets throw in another $700 billion. Somewhere this new math fails me.

    Sep 28 09:10 PM | Likes Like |Link to Comment
  • Wall Street Bailout: Making a Deal With the Devil [View article]
    Peter, though I agree with the overall gist of your article, you said: "Absent FDIC insurance, depositors would have considered risks as well as rewards, and the S & L crisis never would have happened in the first place!"

    So you believe that mom and pop and DavyJ can analyze a bank and make a reasonable decision as to whether it's a safe place to bank? Even A. M. Best didn't downgrade AIG until late last June.

    What do you propose next? Do we all have to evaluate all the drugs on the market and decide whether they are safe for us and our children? Sometimes we do need a central government.

    You might want to choose a better example in the future.
    Sep 28 08:53 PM | Likes Like |Link to Comment
  • Could the Uptick Rule Save the U.S. from Financial Terrorism? [View article]
    My understanding of the reason for eliminating the uptick rule was that it was impossible to enforce due to stocks being traded on multiple exchanges. A 100 share uptick at a fraction of a cent on a trade on the NASDAQ would allow a 10,000 share short trade on the NYSE. That would be within the rule but not within the spirit.

    Rather than trying to bring back the rule, a better solution would be to enforce the 3 day delivery with an iron fist. If a stock was sold short and not delivered on time, close the position to make delivery. No ifs, ands or buts.

    Sep 26 11:37 AM | Likes Like |Link to Comment
  • ROI, Paulson's Plan, and the Rise of Neo-Mercantilism [View article]
    The biggest question of all is "is the bailout really necessary?". The current situation is touted as the biggest crisis since the great depression. Treasury's Paulson and the Federal Reserve's Bernanke stressed the critical nature of an expedient rescue plan, with Paulson saying the bill needs to be passed this week. Yet so far, less than a dozen banks have failed out of the thousands in the U.S., and AIG, Bear Stearns, Lehman Brothers, Morgan Stanley, Fannie Mae and Freddie Mac had to through in the towel.

    All except Lehman have been taken care of.

    Show me some hard proof that the world's financial system is on the brink of collapse.

    Bernanke warned that failure to act could push the economy into a recession, and already-fragile markets could become even less stable. Aren't occasional recessions an expected part of capitalism to correct for excesses in the system?

    I think everyone should read axelrod608's first post on

    Also worth reading is John Hussman's open letter to congress.

    Sep 24 10:09 PM | Likes Like |Link to Comment
  • Running the Numbers: A Five-Minute Valuation of Microsoft [View article]
    Thanks for the reply.
    Sep 20 01:03 PM | Likes Like |Link to Comment
  • Running the Numbers: A Five-Minute Valuation of Microsoft [View article]
    Is that a current valuation or a projected valuation for 2011?

    Since Microsoft has over $21 billion in cash, is the nominal post-tax weighted average cost of capital meaningful?

    Sep 19 11:39 AM | Likes Like |Link to Comment