No Free Cake

Nationalize Banks the True Capitalist Way

I"m puzzled why anyone would think a nationalized bank would lead to more prudent banking behavior. It would be run by the same folks who have our country in vast amounts of debt - almost unaccountably large if you look at the long-term unfunded liabilities of social security, medicare, and such.

Stupid Is as Stupid Does: The SEC and CFTC Legalize Electronic 'Gambling'

From the article, defining gambling: “A person… stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he will receive something of value in the event of a certain outcome.”
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If that's the definition of gambling, most of any kind of investing would be. For example, if I buy TIPS, I have no influence on future inflation but I will receive something of value if it occurs. Seems like the law defining gambling needs to be revised.

Can a Unified Europe Withstand the Economic Realities of 2009?

Why use such a thinly traded security like ADRU? Why not VGK?

Citigroup Sees Gold Reaching $2000

To Stokked: the web site you pitch assumes the world functions in a smooth line. It says, basically, sell a little of your profits each year from gold. Well, gold doesn't always make a profit so if you have to sell some to generated needed cash then you are depleting your capital. The same thing happens with a strategy like that for equities. There are good reasons people who need a cash flow from investments use equity dividends and bond interest. They are more stable and predictable than prices of (any) goods. Go look at a price chart for gold during all of the 90's - it isn't a pretty sight.

Triple-Levered ETFs: Bomb Shelters, or Bomb-Making Kits?

To Infinity ... and beyond ...

Triple-Levered ETFs: Bomb Shelters, or Bomb-Making Kits?

When someone offers a 39:1 levered ETF it will be more fun than roulette! :)

The Biggest Bubble of Them All

Someone else said: A Democracy will fail once the voters realize they can put their country in debt for their own immediate benefit. I wish I'd said that.

Bye-Bye Dividends

Ronald Pires, retained earnings only have positive impact on share price if the company uses that money wisely. Many many times this has not been true, especially as companies grow larger. Sometimes you want to buy a company for growth, sometimes for a share of its earnings - depends on the company and your situation.

S&P Returns Since 1927 Are Important

aarc, if some gov't guarantees the price of any security, what do you think will happen? I know I would dump all my stocks and buy the highest yielding junk bond to maximize my cash flow ... and I'd bet lots of others would too.

Your idea sounds sort of like ... spread enough (borrowed) wealth around until everyone is happy. Er, I believe I've heard that story before.

I'm done here.

S&P Returns Since 1927 Are Important

aarc, I've seen your same message on other articles at SeekingAlpha. A couple things:

You say gov't must get more involved in regulation and do it with a kid glove. Ah, you are expecting the impossible. As we have all observed - markets and economies are linked world-wide. How is any one gov't supposed to regulate anything of that scope and size with a kid glove. The only thing that works on something of that size are blunt tools and these will all have unintended consequences.

I surely wouldn't want the gov't to guarantee risk investments. There are/were products other than equities for people to invest in to avoid risk. They willingly chose the products to buy. Any learning experience can be painful, but, we will, hopefully, be the better for it in the long term. For example, if you own stock you are part owner of a company ... as an owner, you should demand more from a company going forward ... perhaps things like transparent balance sheets, solid dividend payments, and sensible risk management.

S&P 500 Dividend Aristocrats: Withstanding the Test of Time

BobBob, you forget that the yield from stocks typically rise along with the rising stock price so it beats or keeps pace with inflation. Bonds, CDs, and MMF may have a similar yield - but no price appreciation to help with inflation.

This Degree of Volatility Has Only Been Seen Twice Before

In the short term your charts are correct. But, keep this in mind.

After the Oct 1929 stock market drop it rebounded as you show but roughly one year later it had given up all those gains and kept going down until the bottom in mid-1932.

After the minor rebound you show in Oct 1931 the market ended the year lower than Oct's low and continued going down until bottoming out in mid-1932.

After hearing from so many that our current situation isn't like 1929-1932, perhaps you are showing that it is. I hope that isn't so.

See seekingalpha.com/artic... for nice charts of the whole 1929-1932 period.

This Degree of Volatility Has Only Been Seen Twice Before

Wow, it's happened twice before in last 100 years - it's bound to do it again :)


Seriously though, interesting charts

This Isn't a Bottom, It's a Disturbance in The Force

Smarty-Pants: Keep in mind that if China dumped all US Treasuries quickly it also has repercussions for them. One, the value of their holdings would deteriorate. Second, going forward, what other country would want to trade with them knowing they might "bomb" you by selling like that? If China wants to grow and play nice in the global economy, which I believe they do, they won't resort to that action.

This Isn't a Bottom, It's a Disturbance in The Force

FreeFalling: As to your comment about "just wait for Alt-A resets next year". It might not be as bad as you think. Example, my mortgage (not Alt-A tho) resets 2% over 6 month Libor which now is about 4% and a month ago was 3% and a year ago 5%. If I reset now my payment would be exactly the same as it has been!