Jlivermoor

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

He knows a lot, but his is the hedge fund style. Those who can do, and those who blew up give advice columns. The ones who are still in the game, are getting disembowled in this market. The guys frantic, arrogant, and a complete manic depressive. This is a bad call for the average investor.

Bailouts: The Moral Imbalance

This author is definitely the democrat he claims. High moral authority, and little understaning of the economics. These mortgages are worth 95 cents on the dollar if held, and the government can afford to hold them. The breakdown on the system, is not just the excesses by the banks whose bean counters thought they had controlled the risk, but in part due to, and exacerbated by ill concieved mark to market regulation imposed by Sarbanes Oxley. In otherwords, yes our government failed us, the politicians quick to demagogue business and with the hubris to believe government regulation solves everything. It wasn't the CEO's of Fannie Mae's fault, but the politicians who wished to dole out favors for votes on special interests. It started before 1992, but you only need to look at the loans to lower income buyers Clinton forced on Fannie Mae & Freddie Mac.

Bailouts: The Moral Imbalance

As for costing the taxpayer, it is more likely that the Federal reserve will make money on the deal. The government MADE money on the Chrysler bail out, The RTC trust from the S&L Crisis in 1990 MADE money in the end. Taking over 80% of AIG just to LOAN 85 billion and then get it back is in fact high stakes loan sharking. The term "bailout" is hugely inaccurate, just ask shareholders of Bear Stearns, Fannie Mae, Lehman Brothers, etc,..........but it makes for good headlines for main stream media to whoop up ignorance in the heartland

How Bernanke Stunned Congress with the Truth

As for costing the taxpayer, it is more likely that the Federal reserve will make money on the deal. The government MADE money on the Chrysler bail out, The RTC trust from the S&L Crisis in 1990 MADE money in the end. Taking over 80% of AIG just to LOAN 85 billion and then get it back is in fact high stakes loan sharking. The term "bailout" is hugely inaccurate, just ask shareholders of Bear Stearns, Fannie Mae, Lehman Brothers, etc,..........but it makes for good headlines for main stream media to whoop up ignorance in the heartland

How Bernanke Stunned Congress with the Truth

His authoritative tone hides the arrogance of shallow analysis. The asertion of insolvency does not explain that mortgages worth 95 cents on the dollar are being forced to be reported at "mark to market" vulture prices of 50 cents on the dollar, and that Sarbane Oxley regulations have exacerbated what is admittedly critical stress, but that our "insolvency" is partially self imposed fabrication of ill conceived accounting regulation.