einstein p fleet

Where's the Financial Accountability?

So instead of paying out billions in bonuses, why not put the money to use to help resolve a problem --- after all, it was tax payer money that bailed them out in the first place. After that, why not protect American citizens from fraud and a multitude of other unlawful acts by prosecuting these criminal acts? Sounds reasonable, but I seriously doubt it will ever happen -- especially since we left the foxes to guard the chicken coop. Americans are fed up and who can blame them? I'm fed up too.

Thursday Options Update: IYR, M, VALE, FCX, ABX & C,

Bought FCX at 22 and recently closed half the position, although I think they will report a monster quarter based on the the price of gold and copper. That said, it's hard to tell where the stock goes from here or the rest of the market for that matter.

FCX said that Chinese demand for copper remains robust and, if you can believe our own government, the recession is over. On the other hand, the USA is still printing money and seems to be unable to get a grip on any type of fiscal policy, which is causing several BRIC nations to consider alternatives to the dollar, including gold and silver.

Like I said, it's a tough market to wrap your arms around with so much uncertainty, both at home and around the world.

Additional Dimensions of Value Investing

For value investing, there needs to be value. I'm sure that at some point this will apply to C but, sans the government bail out, this company would have ceased to exist. The "too big to fail" model may be coming to an end. If a meltdown in commercial real estate, continued credit card defaults, unemployment, and a second round of residential real estate problems due to resets in interest only loans ends up in another banking crisis, we will see if C is a value stock or a sucker's bet.

Is American Express Still Cheap?

Credit card losses appear to be increasing and the bankruptcy law that was passed may not be of much help given the current situation. Unlike BAC and C, AMEX is strictly a credit card company with no deposit base or other businesses to make up for a tapped out consumer and a prolonged recession. Over the years the brand name that has lost some of it's luster. Would rather own Visa or MasterCard --- if I felt the need to add a credit card card company to my portfolio.

Four Reasons We're Headed Even Higher

It appears that "Buy an Insolvent Company Day" is over and it's back to fundamentals --- which really do stink.

'Too Big to Fail' Has Gotten Much Bigger

I don't get C or BAC, but I own both of them at substantially lower prices. Have already sold portions of both to cover my investment and a small profit, so I can sleep at night.

Have no idea what is too big to fail or what criteria is applied, but the only way to make back the money is to go with the mo. In this case you have to hold your nose and believe in the Tooth Fairy.

Four Reasons We're Headed Even Higher

The AIG move is so odd, that even the NY Times noticed it. When the government owns and is the only source of funding for the banking industry, the car industry, and who knows how many pension plans, it seems to me that driving the share price of AIG, Fannie, Freddie, and others up is another way to re- inflate government (I mean taxpayer) owned assets.

In regard to Doug Kass, I would not bet against the man begin right. He is very smart and should be taken seriously.


On Aug 28 08:08 AM enigmaman wrote:
You seem to make fun of Doug Kass a bear who correctly called the bottom, a genius but now a clown because he is calling the top.

Four Reasons We're Headed Even Higher

AIG was up 10 points because? Was yesterday, buy an insolvent company day?

The Looming McMansion Attack

I sold my loft in NYC and moved to Miami. Have been renting for 4 years, waiting for the market to face reality. Prices have come down, but not nearly to levels that are in line with income and job opportunities. It's the ostrich syndrome ---- and it's going to get a lot worse before it gets better. Not even close to a bottom in residential and commercial is the next shoe to drop. Of course, that could all change when Florida succeeds and becomes part of the Seminole nation again.


On Jul 02 03:52 PM 3 degrees of seperation wrote:

> I have my eye on a just such a house in a prime area of Florida.
> Problem is that asking prices have not come down at all yet, in fact
> the sellers are still asking a premium over what they paid in 2007.
> I am ready with a cash offer when prices get discounted by 35% off
> of the peak, but don't know if we will ever get there in this area
> of Florida. It is frustrating to continually hear how much prices
> have come down, yet it is not happening where I want to buy. I should
> note that nothing is selling at the current asking prices, but that
> doesn't appear to be influencing sellers to do an discounting. Many
> of the homes in this development are unfurnished and never lived
> in, so I know speculators bought a good number of these homes.

Is Goldman Tempting the Interest Rate Black Swan with 1,056% Risk Exposure?

The new hundred dollar bill is going to have a picture of Alfred E. Newman with the motto, "What, me worry?"

The Andrew Jackson Portfolio - Nine Stocks for $20

GE is a good investment. The rest are pure spec plays at this point. You might at well buy two shares and GE and put the rest in Lotto tickets.

Bleak Economic News Continues

Damn. That was for real? I thought I was watching Jon Stewart today and he was just kidding around.

AIG and C are too far gone to help. Sell off the good assets and let the government mothball on the bad ones. It's cheaper. GE and DOW are just fine, provided someone reigns in the short sellers and enforces the law.

Fast Money: Who Will Be the First to Repay TARP Funds (2/27/09)

Al-Qaida will be the first to return the TARP money. We seem to be doing a good job of destroying America and the rest of the world without any outside help.

Chart of the Week: GDP Worse than Expected

The most interesting thing about the revision was not the numbers, it was the reaction by individual stocks.

GE slashed it's dividend despite promises to the contrary by it's CEO a few months back and the stock took it in stride. Credibility aside, it was the prudent thing to do and was probably baked into the price. Admittedly, I am not a long term investor, but I bought GE at $8.50 and felt comfortable doing so. If I need to average down, I can live with a blue chip that pays a 5% yield.

The media and our government have flooded us with a barrage of bad news. Doom and gloom sells magazines, newspapers, news, and political agendas. Things are bad, but how bad remains to be seen. If GE goes broke, I'm sure that I have far better things to worry about than my investment in GE.

Derivatives Alert: Explosive Risk Is Still Unrecognized

Ever since the Bear saving/liquidation wiped out the shareholders, the pundits have called a bottom to the financial services industry no less than five times ---- and have been wrong each and every time. More brokerages and banks have collapsed since them, the bail out seems destined to either nationalize the banks or fail, and I'm not hearing the pundits call for a bottom. In the meantime, the banks refuse to lend or spend --- other than 20B dollars in bonus money for a job well done with borrowed taxpayer money. The banks also saw fit to thank the taxpayer by lowering their credit limits on credit cards and raising their interest rates to levels only a loan shark could get away with. Where is our government? They are spending a little extra time to make sure the rest of our money is spent to actually rescue the taxpayer which, given the track record to date and the fact that the cast of players hasn't changed, isn't a confidence builder.

The one week delay to "get it right" isn't going to matter. If they want to jump start the economy they would divvy the TARP money up amongst the taxpayers that got burned in the form of coupons that have to be spent. If we're going to go down, we might as well have a good time doing it. Who wants a new 52" TV with surround sound?"