Duude

Whitney Gets Bearish: Will She Be Right Again?

You're mixing rhetoric with sound advice. Paulson & Co. will never share advice if they haven't already bought all they want in the near-term. They aren't unaware of their notoriety, nor do they not understand how to time purchases with 13F filings. Its great when others read your 13F filings or hang on your every word. It makes for a great exit strategy. All too often managers like Paulson plan to unload as their 13F filing becomes public.


On Nov 17 07:32 PM 4leafclover wrote:

> Paulson & Co., the hedge fund firm run by billionaire John Paulson,
> expects Bank of America Corp.’s stock to almost double in the next
> two years.

Time for the U.S. Economy to Reindustrialize

Unfortunately, I have to agree with the notion of America re-industrializing is more pipe-dream. Its an especially ironic view for Obama since his cap and tax plans run counter to any re-industrialization. Much less expensive for both labor and energy to set up shop in an emerging nation. But I do understand why he may say such things, while organized labor owns his administration and manufacturing had been their most-prized hold for decades, but this still remains a pipe-dream. Organized labor has doomed manufacturing in this country. Any American re-industrialization will surely set up shop overseas if they want to remain in business. The only weapon the administration has to protect union jobs is protectionism in the private sector. The administration has also thrown around ideas of creating a new green industry, certainly paved with union labor. This can only work if government plans to oblige the left with protectionism. Frankly, stupid politics and greedy unions have brought us to this place. My best advice for them is to instruct their children to not follow in their footsteps but to get an education.

Too Big to Fail Banks: A Simple Solution

What ails large banks starts with our careless government mishandling the sector over decades. The US government has been in the business of tweaking the home ownership market for decades in an attempt to spread the wealth. In so doing, we've established home ownership tax favored status as an investment vehicle, and we've created a market place pushing easy credit onto those least able and least likely to uphold contracts. Surprise, surprise, it blew up! In order to disassemble the Frankenstein our government has now created, we must first stop adding more appendages. The Feds have to stop propping up the real estate market buying up the mortgage backed securities that few will buy, and bailing out people months behind on their mortgages with easy terms and forgiven debt through Fannie and Freddie. Fannie and Freddie need to be spun off into private hands with no more implied or otherwise guarantees. What we're doing now in the real estate market will either need to be unwound at a later date or FOREVER be supported with taxpayer money.

Charlie Gasparino: Another Crash 'Has to Happen Again'

$8.50 a gallon? Here in California I can get it for $2.29. As for homes for sale, I think how many are bank owned is a better indicator. We seem to be beyond selling homes unless we foreclosed on someone and have to dump. Florida along with California and Nevada top the lists on foreclosure per 1000 homes. As for unemployment in Florida it topped 11% in September and that's only those that haven't already stopped looking.


On Nov 08 01:37 PM rennert wrote:

> Deflation and unemployment are the new KoolAid to keep interest rates
> at zero for the Wealthy to fill their coffers even more. While the
> average American gets zero on their savings. Milk here in Florida
> at $8.50 a gallon, everyone is working on my street. only one house
> for sale.Who are they kidding. Food Inflation is here. I can not
> find a tree trimmer or handy man, all have too much work on their
> plate. Are those unemployment numbers really true. Keep interest
> rates at zero, make the Banks even richer.

Charlie Gasparino: Another Crash 'Has to Happen Again'

I'm surprised CNBC has provided Gasparino with so many opportunities each and every day to push his book. Its so, so, so overdone I refuse to buy it just because of the promos. Now they can count me as one less viewer.

Friday Options Recap

MSFT buying RIMM won't stop people from moving to Apple, it will only encourage those that haven't yet moved. The Microsoft name is a warning cry to get out, its over. Microsoft acknowledges this in private, and it also fits in with their internalized approach to develop things internally. It doesn't matter that most all the world understands Microsoft produces crap, what matters is Microsoft is in denial. Its a pride thing.

The Five Worst Bailouts

I'm a little surprised we have no mention of Fannie or Freddie. While they were clearly bailed out and continue to be bailed out as they write down mortgage balances and offer low interest rates for many homeowners who hadn't enough good sense to buy what they could afford in the first place. Many of these same homeowners are now bailing on their new mortgages as well as unemployment rates skyrocket.

Insiders Continue to Sell, Sell, Sell

They're just diversifying their holdings..........into cash.

10 Highest Paid CEOs for 2008: Unbelievable

You have to hand it to Pandit, he sure broke the bank with his compensation as well as the bank's own finances. To be fair, he didn't create the problems at Citi, but has he made the right moves for the company's sake, or defaulted to 'too big to fail' status thus enabling his government backstop? We all know the answer, but he still made 38 million?

Don't Blame Mark-to-Market for This Crisis

I realize the ease of blaming M2M and then point at all that cash we're dumping on these firms to build up their capital. But I have to consider the wisdom of the investment banks that foolishly believed in their quants and leveraged their bets while knowing full well that M2M was the accounting standard in use. Who has ever fully leveraged a stock account with margin and learned how critical your positions are to the health of your account? Now multiply that leverage 30 fold and how much more important should one's knowledge of their portfolio be?

Why Nationalize in 2016?

Nationalize now and reprivatize in 2016? What are you kidding me? Let the government run the banks till 2016? Isn't it bad enough we gave them social security, medicare, amtrak, US Postal and education? Why isn't Johnny learning? I dunno. Maybe our financial system is only as important as Amtrak to our economy......NOT!!!

Nationalization: Is It Inevitable?

I'm curious as to what the rental market will look like within a year and 2 years from this point, in some of the most beat up sub-prime real estate markets? There's an inland area in Southern California known as the Inland Empire that saw a raging building market up to the point that the market collapsed. Most of the foreclosures are sub-prime and alt-a mortgages and the foreclosed bank property inventory is huge. Will likely see vacant homes for years if they aren't rented out.

Banks: Nationalize, Cleanse and Get It Over With

It seems to me it would be far less expensive and much more manageable to temporarily reform would be to drop mark to market accounting for some period of time, rather than nationalizing the banks. Of course, I'm assuming that any nationalizing of the banks would carry with it intention to recapitalize and spin them back off into private hands. If we're talking about permanently nationalizing, no way no how should we even talk about such a bad idea. If you thought you knew what moral hazard was before, government will be happy to show you how much worse it can get.
I don't like the idea of suspending mark to market but it is much more favorable a choice than nationalizing.

Where Citigroup Went Wrong

Let's not forget that it was J.P. Morgan that first came up with credit default swaps, and they have more than any other corporation. But due to larger deposits and less leverage, they look relatively healthy. Truly, its all relative. They have problems too and like their banking brethren do not want to raise the Kimono for anyone. Citibank's largest mistake wasn't losing Dimon. Its not that Dimon is such a better banker. J.P. Morgan has an entirely different financial structure. Citibank also had board members like Robert Rubin who were clearly over their own heads, but still exerted too much influence. If Dimon had stayed with Citibank, its likely they would have leveraged up as Citibank did. Citibank's big mistake was leveraging up as much as they did. It was that leverage on assets that became very illiquid that forced what we are seeing today. No question.

Citi's Flip-Flop on Mortgage Cramdowns: A Really Bad Idea

The difference between a cramdown and foreclosure is upholding contract law and leaving the decision-making with the banking institution who holds the contract or throwing contract law out the window which undoubtedly carries huge new carrying costs for all future contracts which affects real estate appreciation/depreciat... for as far as the eye can see. Its the banks and homeowners that need to come to terms. Banks know they have to contend with foreclosure and they don't desire to become property owners. But the decision has to be left with them, or the real estate market will die.