Tony Petroski's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/270150/comments http://seekingalpha.com/news/market_currents/post/37126?source=feed#comment-775716 775716 Tue, 24 Nov 2009 15:55:10 -0500 http://seekingalpha.com/article/175004-too-big-to-fail-vs-too-political-to-regulate?source=feed#comment-775053 775053
The author recalls Continental Illinois.

I recall Chrysler in the mid-70's. The same arguments were made in favor of a bailout for them at that time. I remember (and have to laugh) at the amounts involved. $600 million was given as the figure sought by Chrysler to save their business.

I argued at the time (when I was in knee pants) that 1) There is no constitutional provision for the federal government to tax one citizen in order to take his money to give it to another. 2) Giving $600 million to Chrysler prevented banks from lending that $600 million to businesses with more promising prospects. 3) Chrysler's failure wouldn't be the disaster it was portrayed: Ford and GM would be comparatively stronger and the two could purchase up whatever assets they could use along with employing a portion of the laid-off Chrysler workers and the overall business of making American cars would be stronger although the medicine would be bitter in the short-run.

We know what happened: The political pressure to bail out Chrysler was too much. Chrysler got their bailout. Lee Iacocca became famous (although he was never able to parlay his fame into political power) and the Chrysler bailout entered the lore as a great success.

Now we know the next chapter of the Chrysler story. A second bailout, this time along with GM, amounts that dwarf $600 million, the institution of Tsars for the first time outside of Russia, and a still-bloated auto system that will drag on the economy for many years to come. The same arguments apply to all businesses, not just banks that are TBTF.

Too-Big-to-Fail doesn't mean that we have to kill all the birds so as to catch the few with swine flu. It means we have to make sure the flocks don't get so large that they block out the sun, and the smaller flocks can still fly (hopefully not all of them to China and Brazil). ]]> Tue, 24 Nov 2009 09:40:23 -0500
The author recalls Continental Illinois.

I recall Chrysler in the mid-70's. The same arguments were made in favor of a bailout for them at that time. I remember (and have to laugh) at the amounts involved. $600 million was given as the figure sought by Chrysler to save their business.

I argued at the time (when I was in knee pants) that 1) There is no constitutional provision for the federal government to tax one citizen in order to take his money to give it to another. 2) Giving $600 million to Chrysler prevented banks from lending that $600 million to businesses with more promising prospects. 3) Chrysler's failure wouldn't be the disaster it was portrayed: Ford and GM would be comparatively stronger and the two could purchase up whatever assets they could use along with employing a portion of the laid-off Chrysler workers and the overall business of making American cars would be stronger although the medicine would be bitter in the short-run.

We know what happened: The political pressure to bail out Chrysler was too much. Chrysler got their bailout. Lee Iacocca became famous (although he was never able to parlay his fame into political power) and the Chrysler bailout entered the lore as a great success.

Now we know the next chapter of the Chrysler story. A second bailout, this time along with GM, amounts that dwarf $600 million, the institution of Tsars for the first time outside of Russia, and a still-bloated auto system that will drag on the economy for many years to come. The same arguments apply to all businesses, not just banks that are TBTF.

Too-Big-to-Fail doesn't mean that we have to kill all the birds so as to catch the few with swine flu. It means we have to make sure the flocks don't get so large that they block out the sun, and the smaller flocks can still fly (hopefully not all of them to China and Brazil). ]]> http://seekingalpha.com/article/174996-deficit-spending-the-emperor-s-children-also-have-no-clothes?source=feed#comment-774913 774913
To those young and not so young who complain and threaten to leave, as a famous American once said: "I feel your pain."

That same famous American said "The era of big government is over," so I guess we have to take his statements with a grain of sand.

Chris Coonan: It sounds as if you have the makings of an interesting book.

Do you not know that the Citizens of the World have been working towards this goal their whole lives: To spread socialism so far and wide and especially in the United States that there is no place to go to, no way to "vote with your feet."

I don't see China absorbing immigrants or appealing to freedom lovers.

Brazil?]]> Tue, 24 Nov 2009 08:27:08 -0500
To those young and not so young who complain and threaten to leave, as a famous American once said: "I feel your pain."

That same famous American said "The era of big government is over," so I guess we have to take his statements with a grain of sand.

Chris Coonan: It sounds as if you have the makings of an interesting book.

Do you not know that the Citizens of the World have been working towards this goal their whole lives: To spread socialism so far and wide and especially in the United States that there is no place to go to, no way to "vote with your feet."

I don't see China absorbing immigrants or appealing to freedom lovers.

Brazil?]]> http://seekingalpha.com/news/market_currents/post/36891?source=feed#comment-769689 769689
Just ask Minnesota Fats.]]> Fri, 20 Nov 2009 16:59:33 -0500
Just ask Minnesota Fats.]]> http://seekingalpha.com/news/market_currents/post/36932?source=feed#comment-769620 769620 Fri, 20 Nov 2009 15:55:11 -0500 http://seekingalpha.com/article/174568-more-aig-controversy-maiden-lane-iii?source=feed#comment-769598 769598
"There are a couple of details I can’t quite reconcile (for example, the Fed balance sheet shows initial funding of $29.3 billion, but everyone says Maiden Lane III paid $29.6 billion for the CDOs), but essentially it went like this."

I was just about to nominate him for inspector general and then this

"The controversy is not over paying $29.3 (or $29.6) billion for the CDOs, since that was the market price. The controversy is over whether AIG should have agreed to settle the CDS at 100 cents on the dollar..."

Readers: Vote. AIG/Goldman or Mr. Kwak? ]]> Fri, 20 Nov 2009 15:43:13 -0500
"There are a couple of details I can’t quite reconcile (for example, the Fed balance sheet shows initial funding of $29.3 billion, but everyone says Maiden Lane III paid $29.6 billion for the CDOs), but essentially it went like this."

I was just about to nominate him for inspector general and then this

"The controversy is not over paying $29.3 (or $29.6) billion for the CDOs, since that was the market price. The controversy is over whether AIG should have agreed to settle the CDS at 100 cents on the dollar..."

Readers: Vote. AIG/Goldman or Mr. Kwak? ]]> http://seekingalpha.com/article/174466-krugman-on-the-invisible-bond-vigilantes?source=feed#comment-769576 769576 Fri, 20 Nov 2009 15:33:46 -0500 http://seekingalpha.com/news/market_currents/post/36932?source=feed#comment-769568 769568
Why is the amount different depending on how you cut the apple?]]> Fri, 20 Nov 2009 15:28:58 -0500
Why is the amount different depending on how you cut the apple?]]> http://seekingalpha.com/article/174460-dollar-yuan-peg-means-china-gains-on-all-fronts?source=feed#comment-769548 769548
"The U.S. has pressured China to let their currency float..."

Evidence? Source?

Mr. Lewis. A fellow American deserves some credit, although you make a good point.]]> Fri, 20 Nov 2009 15:24:22 -0500
"The U.S. has pressured China to let their currency float..."

Evidence? Source?

Mr. Lewis. A fellow American deserves some credit, although you make a good point.]]> http://seekingalpha.com/article/174457-china-and-south-korea-from-emerging-to-emerged?source=feed#comment-769539 769539
"Best known for exports, its domestic economy is once again showing its strength."

(He's writing about South Korea).

We here know the place as the land of the winner of the U.S. Open.

A gutty performance I can tell you and he took on Tiger man to man.

The fans here were cheering for Tiger, but I (contrarian) was cheering for Kim.]]> Fri, 20 Nov 2009 15:19:05 -0500
"Best known for exports, its domestic economy is once again showing its strength."

(He's writing about South Korea).

We here know the place as the land of the winner of the U.S. Open.

A gutty performance I can tell you and he took on Tiger man to man.

The fans here were cheering for Tiger, but I (contrarian) was cheering for Kim.]]> http://seekingalpha.com/news/market_currents/post/36928?source=feed#comment-769512 769512
Me too.

But where do we go from here?]]> Fri, 20 Nov 2009 15:03:31 -0500
Me too.

But where do we go from here?]]> http://seekingalpha.com/news/market_currents/post/36929?source=feed#comment-769508 769508 Fri, 20 Nov 2009 15:01:08 -0500 http://seekingalpha.com/article/174488-why-krugman-is-wrong-about-the-yuan?source=feed#comment-769504 769504
From the article: "the Nobel Prize-winning New York Times columnist, who wrote on Nov. 15 that China severely undervalues its currency."

Forgive me. Peace Prize? Economics? Soccer.

For you who are scoffing at my put-down of Mr. Krugman, I must point out that the august body, the Nobel Committee, awarded my President the prize for peace. He, after all had....

Are you guys sure this Nobel Committee knows what they're doing? ]]> Fri, 20 Nov 2009 14:59:04 -0500
From the article: "the Nobel Prize-winning New York Times columnist, who wrote on Nov. 15 that China severely undervalues its currency."

Forgive me. Peace Prize? Economics? Soccer.

For you who are scoffing at my put-down of Mr. Krugman, I must point out that the august body, the Nobel Committee, awarded my President the prize for peace. He, after all had....

Are you guys sure this Nobel Committee knows what they're doing? ]]> http://seekingalpha.com/news/market_currents/post/36928?source=feed#comment-769487 769487
Is he on the road to riches as Chief of U.S. Operations for the North American market, Goldman Sachs?]]> Fri, 20 Nov 2009 14:45:30 -0500
Is he on the road to riches as Chief of U.S. Operations for the North American market, Goldman Sachs?]]> http://seekingalpha.com/article/174465-are-negative-yield-money-funds-next?source=feed#comment-769469 769469
In an era of dog eats dog, you may pay a protector to keep your goods safe. Those of you with gold and ammution. Think.]]> Fri, 20 Nov 2009 14:34:09 -0500
In an era of dog eats dog, you may pay a protector to keep your goods safe. Those of you with gold and ammution. Think.]]> http://seekingalpha.com/news/market_currents/post/36927?source=feed#comment-769456 769456
Call in a battleship to do in Moody's.]]> Fri, 20 Nov 2009 14:27:04 -0500
Call in a battleship to do in Moody's.]]> http://seekingalpha.com/article/174461-if-u-s-stopped-issuing-treasuries-would-it-go-broke?source=feed#comment-769449 769449
From the article,

"University of Missouri-Kansas City (that same school which employs Bill Black of “The Best Way to Rob a bank is to own one” fame)."

I'm near the same bank where they took down Jesse James.

If your title is a vote, I vote no.

Surely Castro and Hugo Chavez should flee from the masses before my elected countrymen do.]]> Fri, 20 Nov 2009 14:24:34 -0500
From the article,

"University of Missouri-Kansas City (that same school which employs Bill Black of “The Best Way to Rob a bank is to own one” fame)."

I'm near the same bank where they took down Jesse James.

If your title is a vote, I vote no.

Surely Castro and Hugo Chavez should flee from the masses before my elected countrymen do.]]> http://seekingalpha.com/article/174578-more-good-news-for-u-s-exports?source=feed#comment-769439 769439
Please, a dose everyday!]]> Fri, 20 Nov 2009 14:18:26 -0500
Please, a dose everyday!]]> http://seekingalpha.com/article/174548-autumn-headwinds-slow-labor-demand-growth-continue-to-dampen-recovery?source=feed#comment-769435 769435
"But as we've suspected for some time, the labor market will remain conspicuously MIA in the rebound for a while longer, which probably explains why the overall pace of growth is expected to weaken somewhat."

Why?

Give us an opinion. ]]> Fri, 20 Nov 2009 14:16:42 -0500
"But as we've suspected for some time, the labor market will remain conspicuously MIA in the rebound for a while longer, which probably explains why the overall pace of growth is expected to weaken somewhat."

Why?

Give us an opinion. ]]> http://seekingalpha.com/article/174572-why-the-market-s-set-to-move-lower-for-the-rest-of-the-month?source=feed#comment-769424 769424
I'm playing for a breach of the "failure zone."

If I'm wrong, that will make me a failure.

You, my friend, have much potential. Keep going.]]> Fri, 20 Nov 2009 14:11:00 -0500
I'm playing for a breach of the "failure zone."

If I'm wrong, that will make me a failure.

You, my friend, have much potential. Keep going.]]> http://seekingalpha.com/article/174565-getting-technical-the-humpy-trend-lives?source=feed#comment-769412 769412
"The stock market is down for the third day in a row. I won't say I told you, but I did in fact tell you so."

You can't argue with his logic.]]> Fri, 20 Nov 2009 14:02:17 -0500
"The stock market is down for the third day in a row. I won't say I told you, but I did in fact tell you so."

You can't argue with his logic.]]> http://seekingalpha.com/news/market_currents/post/36925?source=feed#comment-769402 769402
Dick Bove:

"Every major institution I spoke with that owns a position in Bank of America thinks he should be back.”

Kid Dynamite: Interview Dick Bove and get the names of the "major institutions." ]]> Fri, 20 Nov 2009 13:57:27 -0500
Dick Bove:

"Every major institution I spoke with that owns a position in Bank of America thinks he should be back.”

Kid Dynamite: Interview Dick Bove and get the names of the "major institutions." ]]> http://seekingalpha.com/news/market_currents/post/36924?source=feed#comment-769397 769397 Fri, 20 Nov 2009 13:54:19 -0500 http://seekingalpha.com/news/market_currents/post/36891?source=feed#comment-769387 769387
Can't we get a break from the Big Ten?]]> Fri, 20 Nov 2009 13:48:43 -0500
Can't we get a break from the Big Ten?]]> http://seekingalpha.com/article/174546-sinking-ships-unemployment-in-massachusetts-and-rhode-island?source=feed#comment-769378 769378
But if Captain America doesn't win the race...]]> Fri, 20 Nov 2009 13:46:29 -0500
But if Captain America doesn't win the race...]]> http://seekingalpha.com/article/174529-fha-insured-loans-black-magic?source=feed#comment-769338 769338
This doesn't meet the smell test:

"In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston. A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary."

The "tell" was "Boston" and "two-unit apartment" (what is that?)

Keep going Mr. Dynamite.]]> Fri, 20 Nov 2009 13:32:30 -0500
This doesn't meet the smell test:

"In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston. A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary."

The "tell" was "Boston" and "two-unit apartment" (what is that?)

Keep going Mr. Dynamite.]]> http://seekingalpha.com/news/market_currents/post/36920?source=feed#comment-769250 769250 Fri, 20 Nov 2009 13:08:20 -0500 http://seekingalpha.com/article/174463-bailout-alternatives?source=feed#comment-769235 769235
From the article:

"...fix has not trickled down to common folk to better their lot."

I have to confess, I caught a little piece of the trickle down, and I alerted all my fellow common folk. They are awaiting your next article.

Freedom. ]]> Fri, 20 Nov 2009 13:04:41 -0500
From the article:

"...fix has not trickled down to common folk to better their lot."

I have to confess, I caught a little piece of the trickle down, and I alerted all my fellow common folk. They are awaiting your next article.

Freedom. ]]> http://seekingalpha.com/article/174551-investments-that-could-hold-up-to-a-double-dip?source=feed#comment-769212 769212
This from the article: "People have to live somewhere..."

Yes. That's true. That's why I'm predicting the come-back of real estate. ]]> Fri, 20 Nov 2009 12:56:10 -0500
This from the article: "People have to live somewhere..."

Yes. That's true. That's why I'm predicting the come-back of real estate. ]]> http://seekingalpha.com/news/market_currents/post/36895?source=feed#comment-769203 769203 Fri, 20 Nov 2009 12:47:28 -0500