mplaut

Added Debt Won't Rescue the Great American Ponzi Scheme

All of this is superbly rational, but one should remember the famous observation by Lord Keynes: The market can stay irrational longer than you can stay solvent.

Credit Crisis Watch: Gaining Positive Traction?

I think that rates is the key. If they are normal, it shows that the situation is normal.

In current circumstances, which decent business would be leveraging up? Almost everyone is trying to live within cash flow because of the tremendous uncertainty that is all over.

We do not want banks to lend again to unworthy customers, do we?

Roubini Attacks Bailout, But Misses Boat on Regulation

Can the markets fix whatever is wrong? Yes, of course.

Will it cause pain? Yes, a lot.

Do markets working on their own develop problems that need to be fixed? Yes, all the time.

It is simplistic to argue that if regulation brought on the problems, then it should not be allowed to fix them. For one, unfettered markets will also bring problems that they could fix.

The premise of regulation was never that no problems will arise. It is that regulation will correct the problems with less pain than the markets.

IMO so far regulation has muddled through, and a lot of pain has been avoided.

Bankrupt Banks Wiped Out by Tulip Backed Securities

MLPs are set up to be "boring" steady low-risk businesses. LINE recently sold off some assets (in Appalachia) that are hot but therefore do not fit the MLP business model. LINE also has around 20 years worth of reserves.

I guess the main threat is a change in the tax law that has been talked about that would hurt them. It is possible but IMO not likely. We need both energy and infrastructure now.

Bankrupt Banks Wiped Out by Tulip Backed Securities

IMO the way to go is high-yielding MLPs. The yield puts a floor under the price and the good ones are hedged for the next 3 years or so. They will be able to pay the yields under any foreseeable circumstances. When people have really capitulated and stop looking for price rises, they will be satisfied with high yields 8-11%. I like LINE and MWE, specifically.