jamesa40

Dark Clouds Gather as Obama Presidency Spooks the Markets

The two biggest indicators of Obama's incompetence were 1) Letting Pelosi write the stimulus bill and 2) Sending Geithner out with a plan that really wasn't a plan, but a lot of generalities that got the market thinking these guys are shooting blanks. Now, with no clear leadership and people scared to death about whether or not banks, or for that matter a lot of other institutions, are going to get nationalize, we are in market free fall. Thank you Mr. President for setting us on a new path....straight to the bottom.

10 Things That Will Make Obama's Economic Plan Successful

How about we just let free market principles work and let the market sort itself out? Sounds simple I know, but sometimes the simple way is the hard way.

Why Bank Fees Need to Be Regulated

If you can't read or do math, then you should just deal in cash. Banks provide a service. If you don't like that service, there are plenty of alternatives. Online banking, credit unions, etc. People who just do nothing and whine will not receive my sympathy.

When America Ruled the World (Part 2)

Agree with all your comments about the bubbles, but it doesn't make sense that if you want to change government to not vote. Would you prefer us to install a dictatorship? If we as a country would actually elect new blood into congress instead of the same old crap, we'd have a lot more leverage. Instead, most people vote the same old guy/gal in because they bring home the pork. Why do you think Bob Byrd is still in there? Ultimately, you batten down the hatches and your wallet and let the market work itself out. It may be one spectacular fireball, but that's what has to happen. My one other disagreement is with Japan. The reason it was a lost decade? Government intervention. Let the markets work and you'll have a painful several years, but not the 25 year apocalypse that you propose.

Increased Deficit Spending: We Can't Afford It

I don't know that I totally agree on your 'dry powder' comment. Sure the real estate bubble has taken a lot out of the market, way more so than in prior recessions, but the fact that bank lending has dried up? That happens in every recession. In good times, the capital flows. In bad times, the banks reel it in. The difference this time may be more that the consumer will have accumulated too much debt and will have to pay that down, thus not needing bank financing. That's different.

'Too Big to Exist' Bill Would Impose Market Discipline

Dollar for dollar? Are you crazy? Might as well just declare all banks insolvent at that point. I'm all for the simple solution of imposing stricter capital requirements for banks the more assets they accumulate, but your (dare I say it?) "anti-capitalist" approach is draconian socialism at it's worst. Banks cannot just make money on the margin of buying deposits and selling loans. They have to use leverage in order to make enough to cover cost and ensure an adequate return to their shareholders. My requiring such a level of capital is to force banks out of business. But, if your intention is to restrict credit to all but the wealthy, be my guest.

Why Are Banks Paying Back Loans They Can't Afford?

The banks don't want Barney Frank calling them up, much like he did to Fritz Henderson to keep a distribution plant open in his state, and telling them who to make loans to, how much to make them for and why they shouldn't foreclose on them when they don't pay. Yak at bonuses and all that other crap all you want, but who the heck really wants the government to tell them what to do? Would you want them taking over your business?

Free Trade Agreements = Evaporated Jobs Worldwide

Temporarily halt free trade agreements? Did you not learn anything from the depression? Remember Smoot/Hawley? That anti-free trade policy is one of the leading causes of the depression. By creating an anti-trade policy, other countries responded in kind. Therefore, our continuing increase (and reliance) on exports in this recession today would evaporate, compounding the very problem you wish to cease.

Bank of America Extends More Credit to a Bankrupt Enterprise

Love how the governor of Illinois was calling BofA a corrupt, greedy organization the day before he gets arrested. Classic.

Are PNC's Account Gimmicks Going Too Far?

I do not have as much of a problem that they changed it based on the accounting of SOP 033, but the fact that they did not restate or footnote that change as part of their presentation. To me, that's willful intent to deceive. Why no-one else picked up on this, I do not know.

BB&T: A Better Gauge on How Banks Will Try to 'Outearn' Their Losses

Actually, those fees you rail upon, if you had listened to the conference call, were due to an increase in lines of business like Insurance. Service charges actually FELL for the linked quarter. If you could keep the emotion and hate out of your articles, you'd have a pretty good analysis, but your hate towards the banking industry is clouding your judgment. Remember, it's not personal, it's business.

Banker CEOs Lied to Congress

You're joking right? Sure, the options may have some intrinsic value, but the reality of the matter is that the author is exaggerating the value, based on current market conditions, to make a point. Just as he exaggerated the title of his article to draw viewers, which he seemed to have done. Why not have an article that says "Congress lied to bank CEO's, by imposing retroactive salary caps and bonus restrictions. Fails to understand how markets work."? This article in my mind is a shill piece that is not constructive in any to fixing the current financial system problem. If you like to read junk like this, by all means continue to do so. I for one will be moving on.


On Apr 06 07:31 AM klh wrote:

> I see so many people bashing this article and deriding the author,
> yet none of them have given any numeric facts to prove the statements
> are false - they have ony provided intuitive arguments by which less
> sophisticated readers might infer they are right, e.g. an underwater
> option is worthless. my conclusion is that these bashers must have
> some kind of vested interest in making the bailout of these firms
> and executives seem kosher - and therefore they must either be: in
> a similar situation, a friend of the banks or a friend of Geithner
> and Pauson.

Is the Bear Market Exhausting Itself?

Technicals aside, the mere involvement of the government in banks, autos and whatever else they plan on taking over is enough to keep volatility and potential risk to the downside high for months to come. Once you get the government out, maybe upside reward will return.

Ken Lewis Finally Gets It Right: 3 More Banking Myths to Add to His 6

Another fine article Tom. Unfortunately, don't expect this to get picked up by the "mainstream" media. They wouldn't want to let a crisis go to waste, to quote someone famous.

You Cannot Stop Obama from Saving the Economy

Here's one delusional blogger that I'll be avoiding in the long term when looking for though-provoking analysis. I believe your brains have floated off to another galaxy.