Who's the patsy's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/224964/comments http://seekingalpha.com/article/105385-obama-s-green-obsession-more-harm-than-good?source=feed#comment-303242 303242
He trots out the same old tired Fox News/CNBC/Larry Kudlow ideological premise that the Church of the Free Market is the Way, the Truth and the Life BUT I guess he hasn't been paying attention to what has actually been happening in the markets where his dearly beloved free enterprise banks have managed to bankrupt themselves misapplying capital. Maybe, just maybe, the free markets aren't perfect. And maybe, just maybe, government seed money does invest capital wisely. Like all the government seed money funding medical research; all the NASA money that produced so many improvements in technology; the Internet; the Eisenhower interstate system. Et cetera. At least there are enough successes when the government invests, and enough failures when the private sector invests, to warrant more than mere sloganeering on these issues.

We are a nation of pragmatists. Let us flush Gerard Jackson, George Bush, the Cato Institute and their coterie of ideological cranks down the toilet and get back to figuring out SOLUTIONS, not SLOGANS.]]> Tue, 11 Nov 2008 14:50:23 -0500
He trots out the same old tired Fox News/CNBC/Larry Kudlow ideological premise that the Church of the Free Market is the Way, the Truth and the Life BUT I guess he hasn't been paying attention to what has actually been happening in the markets where his dearly beloved free enterprise banks have managed to bankrupt themselves misapplying capital. Maybe, just maybe, the free markets aren't perfect. And maybe, just maybe, government seed money does invest capital wisely. Like all the government seed money funding medical research; all the NASA money that produced so many improvements in technology; the Internet; the Eisenhower interstate system. Et cetera. At least there are enough successes when the government invests, and enough failures when the private sector invests, to warrant more than mere sloganeering on these issues.

We are a nation of pragmatists. Let us flush Gerard Jackson, George Bush, the Cato Institute and their coterie of ideological cranks down the toilet and get back to figuring out SOLUTIONS, not SLOGANS.]]> http://seekingalpha.com/article/104543-worst-two-day-decline-since-the-87-crash?source=feed#comment-299805 299805

On Nov 06 07:51 PM redstaterob wrote:

>
> The deficit is due to our ongoing war on terror. 9/11 took about
> seven years of planning....90% of which took place during Clinton's
> term. Of course, Clinton was too busy doing 'other things' in the
> Oval Office rather than going after the terrorists. And he was impeached
> for it. Two wars? Yes, fighting two wars because of 9/11....a Democratic
> debacle. Regulations on Fannie Mae and Freddie? Yeah....those regulations
> were blocked by Chris Dodd, Obama, and Barney Frank. Hey, did you
> know that Rahm Emmanuel was on the board of directors of Freddie
> Mac right after he left the Clinton White House?
>
> The Democrats are so corrupt it is incredible. We are screwed with
> this southside Chicago political hack in the White House.
>
> Get ready for a wild ride and JUST ONE TERM for this charlatan...
>
>
> just my very humble opinion
>
> On Nov 06 07:01 PM oldgoldbug wrote:]]> Thu, 06 Nov 2008 20:44:48 -0500

On Nov 06 07:51 PM redstaterob wrote:

>
> The deficit is due to our ongoing war on terror. 9/11 took about
> seven years of planning....90% of which took place during Clinton's
> term. Of course, Clinton was too busy doing 'other things' in the
> Oval Office rather than going after the terrorists. And he was impeached
> for it. Two wars? Yes, fighting two wars because of 9/11....a Democratic
> debacle. Regulations on Fannie Mae and Freddie? Yeah....those regulations
> were blocked by Chris Dodd, Obama, and Barney Frank. Hey, did you
> know that Rahm Emmanuel was on the board of directors of Freddie
> Mac right after he left the Clinton White House?
>
> The Democrats are so corrupt it is incredible. We are screwed with
> this southside Chicago political hack in the White House.
>
> Get ready for a wild ride and JUST ONE TERM for this charlatan...
>
>
> just my very humble opinion
>
> On Nov 06 07:01 PM oldgoldbug wrote:]]> http://seekingalpha.com/article/99727-julian-robertson-some-buying-but-bearish-on-the-economy?source=feed#comment-281666 281666 At least the Dems will spend $ on the US instead of sending it down an Iraqi rabbit hole.]]> Mon, 13 Oct 2008 18:48:12 -0400 At least the Dems will spend $ on the US instead of sending it down an Iraqi rabbit hole.]]> http://seekingalpha.com/article/94472-fannie-freddie-bailout-disastrous-fiasco?source=feed#comment-248864 248864 Management repeated this lie in a conference call in August 2008.
Anyone know of a class action lawsuit commencing against the company?]]> Mon, 08 Sep 2008 20:29:53 -0400 Management repeated this lie in a conference call in August 2008.
Anyone know of a class action lawsuit commencing against the company?]]> http://seekingalpha.com/article/94307-a-closer-look-at-the-treasury-s-gse-preferred-stock-purchase-plan?source=feed#comment-247630 247630
I listened to my Morgan Stanley broker and bought FNMA preferred last year, without really examining his contention that the company had an implicit government guarantee.

When the preferred fell to 10 this August, I bought some more figuring that the government would not let all the US banks that owned preferreds fail - that they would save the banks now rather than saving them later (through the FDIC).

Little did I realize that when it came to a showdown between US banks (preferred holders) and foreign central banks (debt holders), the foreign banks would win. The US can afford to let US banks fail, but cannot afford to alienate the foreigners who have been financing our government for the past decade or more.

Bill Gross was smart enough to figure this out long before me. I was the patsy. Shucks. And I thought I was being smart by not investing in real estate. Turns out the Treasury is going to take my money and invest in a McMansion for me.

Now what? The equity ticket-holders have been allowed to keep their ticket-stubs, in case FNMA emerges from this crisis with anything left. Common has been diluted 80%, but will probably be further diluted if the Treasury's exit strategy is a sale to private capital down the road.

What is a preferred share worth without any dividends? Can I get some share certificates for my wall, or maybe on second thoughts, for my bathroom?

Maybe it won't be so bad. There is $22 billion outstanding preferred, with dividend obligations of $1.7 billion. As I understand this plan, this will stand behind the Treasury's up to $100 billion in 10% senior preferred. If the full $100 billion is called upon, there probably won't be anything left to pay the ticket stub-holders. So this forces us shareholders to hope that the country's housing problems turn around, that the government can sell off non-performing assets, improve management and avoid dipping too deeply into the taxpayer's pocket. If the company emerges from conservatorship, shrunken yet profitable, with $30 billion or less in senior preferred, then the existing preferred (and possibly common) shareholders will get a decent return.

But maybe I am just being a patsy again.

In any event, we won't know for years. Any predictions for what will happen on Monday?]]> Sun, 07 Sep 2008 14:26:48 -0400
I listened to my Morgan Stanley broker and bought FNMA preferred last year, without really examining his contention that the company had an implicit government guarantee.

When the preferred fell to 10 this August, I bought some more figuring that the government would not let all the US banks that owned preferreds fail - that they would save the banks now rather than saving them later (through the FDIC).

Little did I realize that when it came to a showdown between US banks (preferred holders) and foreign central banks (debt holders), the foreign banks would win. The US can afford to let US banks fail, but cannot afford to alienate the foreigners who have been financing our government for the past decade or more.

Bill Gross was smart enough to figure this out long before me. I was the patsy. Shucks. And I thought I was being smart by not investing in real estate. Turns out the Treasury is going to take my money and invest in a McMansion for me.

Now what? The equity ticket-holders have been allowed to keep their ticket-stubs, in case FNMA emerges from this crisis with anything left. Common has been diluted 80%, but will probably be further diluted if the Treasury's exit strategy is a sale to private capital down the road.

What is a preferred share worth without any dividends? Can I get some share certificates for my wall, or maybe on second thoughts, for my bathroom?

Maybe it won't be so bad. There is $22 billion outstanding preferred, with dividend obligations of $1.7 billion. As I understand this plan, this will stand behind the Treasury's up to $100 billion in 10% senior preferred. If the full $100 billion is called upon, there probably won't be anything left to pay the ticket stub-holders. So this forces us shareholders to hope that the country's housing problems turn around, that the government can sell off non-performing assets, improve management and avoid dipping too deeply into the taxpayer's pocket. If the company emerges from conservatorship, shrunken yet profitable, with $30 billion or less in senior preferred, then the existing preferred (and possibly common) shareholders will get a decent return.

But maybe I am just being a patsy again.

In any event, we won't know for years. Any predictions for what will happen on Monday?]]> http://seekingalpha.com/article/85512-just-how-terrible-is-housing-as-an-asset-class-roubini-weighs-in?source=feed#comment-208015 208015 I have owned six homes in my lifetime and I have never made as much money on any of them as I have in the stock market, particularly when you adjust for risk.
Since most people sell their homes within 5 years anyway, the idea of "ownership" is a psychological illusion. Especially when it is mortgaged to the hilt (The bank owns it then; you just own a leveraged option). I sold my last home in 2003 and have rented ever since. No single asset accounts for more than 10% of my investment portfolio. And I find it is perfectly possible to feel at home in a place you have rented for years. Actually, my ideal "home" would be a hotel. An apartment in the Carlyle in New York.
]]> Thu, 17 Jul 2008 15:22:06 -0400 I have owned six homes in my lifetime and I have never made as much money on any of them as I have in the stock market, particularly when you adjust for risk.
Since most people sell their homes within 5 years anyway, the idea of "ownership" is a psychological illusion. Especially when it is mortgaged to the hilt (The bank owns it then; you just own a leveraged option). I sold my last home in 2003 and have rented ever since. No single asset accounts for more than 10% of my investment portfolio. And I find it is perfectly possible to feel at home in a place you have rented for years. Actually, my ideal "home" would be a hotel. An apartment in the Carlyle in New York.
]]> http://seekingalpha.com/article/84982-proposed-solution-to-decline-in-american-wealth-free-trade?source=feed#comment-205725 205725 Tue, 15 Jul 2008 06:15:22 -0400 http://seekingalpha.com/article/84638-bond-expert-cds-and-agency-spreads-today?source=feed#comment-203149 203149 Fri, 11 Jul 2008 13:39:43 -0400 http://seekingalpha.com/article/84609-fear-of-higher-taxes-a-cause-of-sell-off?source=feed#comment-202925 202925 Fri, 11 Jul 2008 10:08:18 -0400