charles hopfl

Wall Street Breakfast: Must-Know News

If Geithner knew about these bonuses to AIG financial group's crooks, and said nothing until he knew they would be paid, he has lost all credibility. To even suggest that they could not have been stopped because of contractual requirements is an erroneous argument. These culprits had committed fraud, on the company and the American financial system (worldwide actually) by selling insurance without assets to back it up and hiding these facts from the world. IF it was with the encouragement of the US financial system and equity traders, it is easy to see why Paulson, Geithner and the various insiders on Wall Street do not want to rock the boat. That being said, it is not easy to see where the fraud and criminality will stop.

GE: Can You Hit This Fastball, Mr. Immelt?

Immelt looks good on Charlie Rose and other media shows. If only looking good would translate to NBC which has not had a decent show in years. Even Leno makes fun of NBC, and as he says, "is anyone even listening". Bottom line, Immelt leads an arrogant bunch of managers, leads by the nose an faceless Board, and has led the shareholders down into a bottomless pit. A clean sweep of these supposed managers would do a lot to resurrecting the credibility of the company. The CNBC talk show hosts should show some spunk.

What the Treasury Plan Needs: Price Discovery, Writedowns and More

The American public would be more understanding to all these bail out plans if they were given something. Changing capital loss treatment to ordinary loss in 2009 would allow the average investor to offset his income against these losses in 2009. His cash flow would be improved. The investor had no say in the lack of oversight, the lack of transparency in hedge fund and private capital dealings especially with the use of leverage, the scams and fraudulent practices of many executives to enrich themselves through bonuses and fees, etc. and is now asked to pay for many years through additional taxes for these misdeeds. Its great to worry about saving the bankrupt, saving the defaulted homeowner, etc. What about the average person?

Wall Street Breakfast: Must-Know News

Everyone wants a tax change for 2009. It would only be fair and prudent to allow (at least) individual stockholders to take their losses on security sales as ordinary losses instead of capital losses. This would only apply for 2009 and would allow these individuals to lessen their tax burden on other income including wages for 2009 and clear the air for the future. The argument that the government could not afford to take such a lessening of income in 2009 falls flat when looked at against the trillions the government is giving out in bail out money and war effort (all of which does not help the majority of taxpayers in the country one bit). The majority need some help desparately.

Caterpillar: Does It Deserve the Goldman Downgrade?

Isn't it crazy when after a stock has had a long ride on the downside and has about bottomed out, that the rating agencies and brokers, (like Goldman, etc.) then wake up and all of a sudden decide that the stock should be down graded. Is this stupidity or a phony ploy to drive the stock lower since they have shorted it. It is probably both and this is what has allowed cynics to believe that the market is rigged, especially against the public.

Friday Options Outlook: HIG, CL, SWY, CHK, GFI, CSCO, MIR

There should be an investigation of HIG. All of a sudden, there is a tremendous and dramatic increase in the number of calls on the stock and then the company reveals that its profits will increase due to it releasing some reserves. Of course, no one at the company, or its investment bankers, etc. bought any of the calls, or bought the stock, after learning of this interesting information (prior to the public knowing these facts). Who are we kidding. Where is the SEC, etc. All looking for new jobs, no doubt.

Musical Chairs - Cramer's Mad Money (10/3/08)

Someone is going to have to pay some heavy damages if the Wachovia-Wells deal gets made. After announcing that it had a written deal, Citicorp stock was bought by many and Wachovia stock was sold by many, all who are all now feeling the misled for good reason. If there was actually a written deal, then the Wells people should feel the wrath of the Texaco deal, and if it puts them out of business, so be it. The fed and the Treasury should step in here since they can control what goes on especially if they are buying the bad assets of both Wells and Wachovia (assuming these smart institutions had a few bad loans on their books).

Hedge Funds: The Next Shoe to Drop

Frankly, who should care if all the hedge funds go out of business and all the arrogant fat cats with the huge bonuses and overinflated egos actually have to get a regular job. What we should worry about, really, is that these unregulated funds have had the audacity to sell CDO's, make swaps and do huge trades with complex instruments on huge leverage and have done this in secret with no oversignt. When these deeds and misdeeds are uncovered, they may have undercut any good the bailout plans and the government interventions around the globe, may be doing. Just the fact that no one knows what has been done, what has been committed to, etc. is a disgrace and the oversight officials in all the governments around the world should have egg on their faces. Regardless, who do you think will be the real losers?
On another point, these same fat cats have raised separately, huge sums of money to invest in the toxic assets which the government will sell off, after they do the bail out deal. Does anyone know who controls these assets and how much is involved? Again, no oversignt. The individuals who have been responsible for the debacle will reap the benefits once again. All in the name of free enterprise. Hopefully the new President, whoever he is, will at least try to understand the problem and make some corrections. The fools who have run the government for the past 8 years do not seem to have a clue (and/or maybe they have actually benefitted mightily).

Bailout: Reaching a Deal

The details are lacking. The NYTimes reported Sunday that Paulson had the nerve to demand that Congress forbid judicial review of his decision on use of the money in the bail out. He could be allocating trillions of the assets to his buddies at Goldman, etc. at discounted prices allowing them to make huge killings and no one should object. The Times also points out that Goldman officials were sitting in on the decisions about AIG and Fannie and Freddie, when they had 20 + billions at stake on the decisions. Who else from the club was present at these meetings? Certainly not any represents of the common folks. Who is getting hurt most from this bail out and fall out? The common folk. Has anyone even suggested that the culprits at AIG, Fannie, Freddie, Lehman, Goldman be indicted for this debacle. No one in authority, but the poor slob who caused a few errant mortgage loans to be made is quickly indicted and shown off as the culprit. The greates lie of all is that sub-prime mortgages caused the financial problems, when now it is exposed that the CDO's and the swaps were overwhelmingly more involved (by trillions). Hopefully the media will get this right at last and the perception for the public corrected. The facts have still to out and the bail plan will show many surprises that no on but the insiders have contemplated.

Prepare to Sell Monday - Cramer's Mad Money (9/19/08)

Cramer tells it the way he sees it. You believe or not, and he is wrong some of the time but so is everyone else. Look at our esteemed treasury, fed and SEC officials. If you watch the other shows like Cramer, you see more biased comments and opinions, and you follow them also at your peril. There is no easy way.

Hedge Funds May Have Gone Too Far

Cox and Rubin's buddies at Goldman and MS are being attacked and all of a sudden there is some hype that the regulations will be enforced. On their own, the fed and treasury could do nothing, but add the NY ATTorney general and the British looking into short selling, and the inside boys are worried and want to comply. What a lousy system for the average investor. Some of these culprits, in government and in the hedge funds should go to jail and be forced to give up their ill gotten gains.