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dnpvd51

dnpvd51
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  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    This comment does not make sense.

    0.25% is less than the rate of inflation. This is no free lunch.

    My take is that the Federal Reserve has flooded the system with so much cash that the recipients are so bloated with cash that they are forced to leave all this cash essentially losing value to inflation. This is obviously not a stable situation.
    Mar 9 12:59 AM | 1 Like Like |Link to Comment
  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    Good article.

    The critics here remind me of the critics before the last crash. It was obvious housing was about to crash. House Prices were obviously way out of line. But the Pollyannas claimed that all was well.

    Now the FED has created an even bigger mess, and we have folks here still claiming it will all end well.

    The problem is knowing how to proceed in the face of this debacle. Even if one saw the last crash coming, one needed to be clairvoyant to foresee the bailouts and other stupidities designed to save and even enrich the clueless.
    Mar 9 12:18 AM | 1 Like Like |Link to Comment
  • Why Does Ackman Think Fannie Mae Is A Ten Bagger? [View article]
    How So??????????????????????

    Because supposedly they are being more responsible now then previous and they are not being responsible now.

    And 3% or 5% or anything like that is not sufficient collateral.
    Mar 7 10:45 PM | Likes Like |Link to Comment
  • Why Does Ackman Think Fannie Mae Is A Ten Bagger? [View article]
    OH give me a break.

    Fannie and Freddie are at least as guilty as everyone else and probably more guilty.

    And right now these guys are buying loans against insufficient collateral at artificially low interest. This is a recipe for disaster.

    But when these guys blow up next time, who are you going to blame?
    Mar 7 04:22 PM | Likes Like |Link to Comment
  • Tactical Bond Strategy For Rising Treasury Rates [View article]
    What is yield for BIL?
    Mar 6 09:05 PM | Likes Like |Link to Comment
  • Why Does Ackman Think Fannie Mae Is A Ten Bagger? [View article]
    I think it is sickening that people are trying to game the government on this stock. These guys went bust. The stock in this company should not be worth anything.

    It is bad enough that the government has bailed out everybody under the sun. And particularly the government has bailed out Fannie and Freddie and everyone involved with them.

    Fannie and Freddie have been turned to profitability based on money printed out of thin air. It is not a free ride.

    If the government gives the shareholders anything this is the height of disgusting.
    Mar 6 08:06 PM | 1 Like Like |Link to Comment
  • The Winter Of Our Discontent [View article]
    I don't agree that QE the first was necessary.

    The government could have mailed every citizen a check if liquidity was an issue. So if there actually was an intractable problem, why not this solution?

    Good article.
    Mar 2 11:39 PM | 1 Like Like |Link to Comment
  • Fannie's New Chairman Perry Touts 'Essential Role' Of GSE [View article]
    It sure is a good business model trying to make profits by lending at artificially low rates against insufficient collateral. These guys are going to crash and burn spectacularly once again sooner or later.

    If the shareholders get anything, any politician remotely responsible should be run out of town. And shareholders should be ashamed for trying to jump on the dole in such a flagrant manner.
    Mar 2 01:15 PM | Likes Like |Link to Comment
  • Fannie Mae repays Treasury, and more [View news story]
    Fannie and Freddie went bankrupt because they lent money to folks that paid too much for their house, then borrowed against their house and bought cars and yachts and college educations and trips to Europe.

    And then when sky high housing prices started dropping these same folks quit paying the loans and Fannie and Freddie were left holding the bag.

    Before this Fannie and Freddie were private in the sense that the profits went to the shareholders and bondholders and the overpayed executives.

    But of course the losses go to the government, and the government solution was to print money to bail all these yahoos out and now the shareholders even have the nerve to ask for more money. And when the government prints money to bail people out, the effect is that savers lose the value of their savings.

    And then through some perversion of logic or religion or whatever, the savers have somehow become the entitled ones. WTF?

    And earlier you claimed "The risk-free rate of return is at all times less than inflation." Where did you get that idea?
    Mar 1 12:58 AM | 1 Like Like |Link to Comment
  • Fannie Mae repays Treasury, and more [View news story]
    You don't see that your point about gold does not logically say anything about dollars?

    I give up. The bottom line is that our policy is stealing from savers to pump up the housing market and the bond market. Fannie and Freddie's profits are basically stolen from savers.(And there are plenty of very smart people that share this view. So it is not like it is out in left field).

    I enjoy reading mathematics and mathematical proofs. I was hoping to prove the above statements mathematically. But we have a guy that claims that value cannot be stolen because dollars don't hold value or some nonsense, well I give up.

    Now all the victims of Maddoff can just keep their shares and pretend that they were holding dollars instead. Then they would have had nothing stolen from them.
    Feb 28 12:57 PM | 3 Likes Like |Link to Comment
  • Fannie Mae repays Treasury, and more [View news story]
    Jim,

    Apparently, your point is that gold goes up and down in dollar terms and yet there is nobody stealing the value of gold. The market is making this decision outside of any thieves.

    So if this happens in gold it must be true that dollars go up in down in value, and nobody is stealing the value of dollars. The market is making this decision.

    I am not so sure that your logic here is all that sound.

    Anyway, we have the Federal Reserve claiming that they can influence the value of dollars. The Federal Reserve openly claims that their policy targets the inflation rate. Further, since the interest rate on savings is clearly lower than the inflation rate, the Federal Reserve is implying that their policy of raising inflation will take from savers.

    So let me ask you how the Federal Reserve can increase the inflation rate without taking from savers?
    Feb 27 08:33 PM | 2 Likes Like |Link to Comment
  • Fannie Mae repays Treasury, and more [View news story]
    I don't understand what the hell you are talking about.

    If a dollar has value over and above the paper and ink, it must be the exchange value.

    Why are your comments getting likes? We must have members of the Federal Reserve reading this stuff.
    Feb 27 03:25 PM | 2 Likes Like |Link to Comment
  • Fannie Mae repays Treasury, and more [View news story]
    I read through your thing here. How is owning a dollar not owning an exchange value? The paper the dollar is printed on is not all that valuable.
    Feb 27 02:34 PM | 1 Like Like |Link to Comment
  • Fannie Mae repays Treasury, and more [View news story]
    JasonC,

    You can make up your own definitions if you want, but value is clearly measurable. When the stock exchange opens tomorrow, the value of the securities will be measured in bid ask and settlement prices.

    The value of a currency is more abstract and more difficult to measure, but this does not take away the fact that the dollar has a value.

    Further it is obvious that the value of dollars in a savings account held at .1% interest is dropping and it is completely idiotic to suggest otherwise.
    Feb 27 01:18 AM | 3 Likes Like |Link to Comment
  • Zacks' Bear Of The Day: Whole Foods Market [View article]
    It is misleading to claim that this stock is up 700%

    WFM was hammered five years ago but before that it was expensive.

    I shop here all the time. As long as they maintain their quality, I think this is a good one. Almost every good company is too expensive and some bad ones also.
    Feb 27 12:22 AM | 1 Like Like |Link to Comment
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