madasiwannabe

Paulson in a State of Panic

AMEN!!! Conservatorship doesn't give Paulson the right to wipe out the GSE's to save the other mortgage holders. The laws are very specific about the charter of a conservator, and unless there's more to the purchases that secures the current company value, this goes against that charter.

We all know the takeover had nothing to do with the solvency of the GSE's. If it did, why haven't they used any of the 200 Billion to stabilize the GSE's. Paulson knew all along that at some point he would use the GSE's to buy up toxic assets to clean the books of his buddies. I find it interesting that every time Goldman Sachs or Morgan Stanley stocks take a dive, Paulson comes up with another plan. Time to get the FBI and supreme court involved to stop this madness.

Capitalism: RIP

Excellent point Kertch. In "Common Sense", Thomas Paine had it right when he said that government is a necessary evil and only as good as it's ability to protect the interests of the governed. We have slowly drifted from protecting the majority, to the 10/10/80 rule... The interests of the richest 10% and poorest 10% get protected. The other 80% get to pick up the tab.

I'm getting tired of paying for parties I'm not invited to.

Moody's, Fitch, S&P, SEC Are All Useless

The credit rating agencies are all masters of the obvious. Downgrading a company after it falls says it all. Where were they 6 months ago when the market figured it out.

SEC is very good at sitting on their hands. Naked shorts are not killing stocks, bad policy and greedy companys are. As you alluded to, LEH was a victim of long selling, not short. Also include Paulson's confidence building backstop scheme. All it really did was make everyone question the real health of the market. You know it's time to worry when everyone tells you not to.

Tuesday, September 2: Week in Review

Analysts are trying to make sense out of a shark frenzied, irrational market. There are no patterns, only speculators trying to catch a peak or trough to make a quick buck. In this market what happened yesterday has little to do with today.

Time will prove that China made a bad move dumping out of the GSE's at the bottom. With commodities crashing and fund managers pulling out, the financials are the most attractive deal in town. Expect another Mid July financial correction to happen shortly.