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dnpvd51

dnpvd51
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  • The Fed's Paint-By-The-Numbers Insanity: Why Humphrey-Hawkins Should Be Repealed Now [View article]
    "At the end of the day, the Fed can only do one useful thing—and that is to passively provide standby liquidity at a penalty spread on top of market driven interest rates; and in so doing, to only accept sound collateral consisting of short-term treasury bills and blue chip business paper against inventory and receivables. Indeed, just put the penalty spread for discount loans at 300 basis points, at least. That change alone would eliminate the ability of Wall Street gamblers to fund their carry trades by arbitraging the yield curve at the Fed’s discount window."

    This is all the FED should be doing according to the Author.

    I believe it is the author's contention that Federal Reserve monetary policy does not grow the economy, and these folks at the Federal Reserve don't understand what they are doing anyway.
    Jul 21 11:09 AM | 1 Like Like |Link to Comment
  • The Fed's Paint-By-The-Numbers Insanity: Why Humphrey-Hawkins Should Be Repealed Now [View article]
    David,

    He answered your question in the article.

    "More than anything else, the financial markets need to be liberated from the current destructive regime of monetary central planning. Let the money market determine the market-clearing price for speculative borrowing to fund the carry trades. Let price discovery determine the price of long-term debt based on the supply of real savings versus the demand for honestly priced debt capital. Let two-way markets re-establish themselves in the risk asset sectors by removing the Fed’s “put” under the stock market and its systematic undermining of fear and short interest in the Wall Street casino."

    Et al
    Jul 21 02:37 AM | Likes Like |Link to Comment
  • Making The Rich Richer [View article]
    Mayhawk,

    Explain to me where the value of your money is going that you have in the bank at .whatever % interest?
    Jul 20 02:25 PM | Likes Like |Link to Comment
  • Making The Rich Richer [View article]
    Right, we need to keep government spending on airports with oil over $100 a barrel.

    Railroads are too efficient.
    Jul 18 04:41 PM | Likes Like |Link to Comment
  • Large-Scale Natural Gas Exports Inching Toward Reality [View article]
    "Oil companies have to make a big deal about shale plays because that is all that is left in the world. Let's face it: these are truly awful reservoir rocks and that is why we waited until all more attractive opportunities were exhausted before developing them. It is completely unreasonable to expect better performance from bad reservoirs than from better reservoirs."

    Arthur Berman
    Jul 18 02:03 PM | 2 Likes Like |Link to Comment
  • Making The Rich Richer [View article]
    The 2006-8 crash which was caused by the Federal Reserve disproves your whole argument.
    Jul 18 01:53 PM | 1 Like Like |Link to Comment
  • Need 7-8% Yields In Retirement? Build Your Income Portfolio With Closed-End Funds (Part III: Discounts And Premiums) [View article]
    I have been taking a longer look at the Pimco CEFs, specifically PCI PDI and PHK.

    It looks to me that PCI and PHK are very similar except that PHK is holding longer term notes. Doesn't this make PCI safer almost by definition and we are not even looking at the premium difference? I could be wrong here about all kinds of things as I am far from an expert. Please someone let me know.
    Jul 17 01:08 PM | Likes Like |Link to Comment
  • Bond Yields Don't Rise When The Fed Tightens Prematurely [View article]
    How can this FED be looser?

    0-.25% fed funds rate is about as low as they can go.
    Jul 17 12:36 PM | Likes Like |Link to Comment
  • Making The Rich Richer [View article]
    I agree with your article.

    I am also of the view that the government cannot give to the wealthy without taking from some other class.
    Jul 17 12:22 PM | 1 Like Like |Link to Comment
  • The Data Problem With The Natural Interest Rate Debate And How To Fix It [View article]
    You are confusing capital formation with inflation.

    It does not do much good for the economy when resources are sent towards building a McMansion as opposed to building a factory. But Easy money makes for easy consumption.
    Jul 16 01:00 PM | Likes Like |Link to Comment
  • Need 7-8% Yields In Retirement? Build Your Income Portfolio With Closed-End Funds (Part III: Discounts And Premiums) [View article]
    We need CEFs from the 2008 crash to test the data.

    Recent history will be too optimistic.
    Jul 15 02:22 PM | Likes Like |Link to Comment
  • The Data Problem With The Natural Interest Rate Debate And How To Fix It [View article]
    Obviously, the rate of interest is less than the rate of inflation. Folks that have money in a savings account are losing the value of their money.

    I wonder where Krugman thinks this value is going.
    Jul 15 01:58 AM | Likes Like |Link to Comment
  • Need 7-8% Yields In Retirement? Build Your Income Portfolio With Closed-End Funds (Part III: Discounts And Premiums) [View article]
    I like to test my ideas by putting them out there. This way if someone can shoot them down, I better rethink.

    I still am not convinced on this one. Is there any historical data one way or the other?
    Jul 14 03:28 PM | Likes Like |Link to Comment
  • Need 7-8% Yields In Retirement? Build Your Income Portfolio With Closed-End Funds (Part III: Discounts And Premiums) [View article]
    I don't agree for many reasons.

    One being that if the higher NAV is related to higher returns, the CEF with higher returns will take the biggest hit. This must be because higher yield is generally related to higher risk.

    The second reason being that the price that the CEF can liquidate itself at is something of a floor on price. Of course, some CEFs may be in things that move much farther in a down turn but I don't see how NAV premiums are determinative of this.

    I don 't see a down turn for the near future, but I still feel much more comfortable in CEFs that offer a discount.
    Jul 14 01:07 PM | Likes Like |Link to Comment
  • Need 7-8% Yields In Retirement? Build Your Income Portfolio With Closed-End Funds (Part III: Discounts And Premiums) [View article]
    I would think the discount would matter of the funds start crashing. Would not the funds with big premiums have farther to fall?
    Jul 14 01:57 AM | Likes Like |Link to Comment
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