KIT

Did We Nationalize Banks, Or Did They Nationalize Us?

The whole group should have been Nationalized. The taxpayer once asked to fix the mess would now be benefiting from the profit. Once the bailout was recovered and new rules put in place the taxpayer could sell the working company to the private sector. This would elliminate the moral hazard of no down side for doing wrong.

Unsustainability, High Beta, and Liquidity Risk Pervade Capital Markets

At about 6500 DJA Insurance companies have to convert to cash to cover policies ( law ) the govt is not required to bail them out so they will have to sell their holdings. No suprise plunge prevention kicked in just as we hit this level in March.


On Jul 14 06:08 PM TheFounder wrote:

> Excellend analysis and clear thinking. Almost all arrows pointing
> in the same direction. I am not convinced that this rally is over
> and we are heading down to re test the March lows.

Can a Market Crash Save Us from Hyperinflation?

Wealth gets political influence. A collapse of the markets will limit the power of the wealthy but only temporaraly as the generated low stock prices will offer them new oppertunities to become more powerful.

The market is the wheel of the economy but political expedience is the grease that set the direction the wheel will roll.

Your article is correct in every way but the politicos have masters to serve

Nothing Is Ever Truly 'Off the Books' in the Financial World

If the Titanic was held off the books its stock would be rising now because the ship is sinking much slower. Maybe a Titanic ETF could be set up

Wall Street Allowed to Grade Itself in Stress-Test Sham

On May 11 06:20 AM boisterousbob wrote:


> I am not suggesting there were no other problems, of course there
> were. However, reminding you of context, banks had existed successfully
> on a fractional reserve model since the late 1600's with accounting
> rules more similar to those we now have.

Back then shareholders were held personally liable for corperate losses so hedged derivitives at 10, 30 and 100 to one would have scared the hell out of them and would not exist.

A Bull Market That Few Are Buying

On May 11 09:13 AM Missing_Link wrote:

> On May 10 11:51 AM InvestBaboo wrote:
Good luck getting the suckers to buy further into the suckers' rally. I believe this cash is ultra-conservative; if it weren't, it wouldn't be sitting in money market accounts.

Bang on I'm 53 too close to retirement to shift a lifetime of savings into a recession market. I have made 4 years worth of interest on USD CAD exchange rate so I dont care that the Money market account pays no interest. NOBODY is getting my money till I see clear REAL earnings recover. 13 34 week crossover and retest IS REQUIRED. I get on chance to do this right for the rest of my life. At this point in my life I have no time to wait out a mistake

Chart of the Day: Common Capital vs. TCE

The problem is your patient has cancer and a cold, you know it but you don't want to tell the family. So you test for the cold and tell them its possible to get through.

Marking to fantasy can't take away the reality there are truly huge losses out there and we will have to work through them.

I am reminded of the British Prime Minister returning from a Meeting with Hitler and holding high a document proclaiming "PEACE IN OUR TIME".

Well by golly that was exactly what the public wanted to hear and people started planing for the great peace what was upon them. We had world war 2 shortly after.

Dividend Stocks to Avoid

After GE's 2008 announcement to actual performance last year I simply 180 reverse anything they say to be the truth.

This year " Everything is OK we don't need more capital " I have to take as they are in trouble ( probably big trouble )

If I could trust the management I could logically say they are a deal at $10 but as long as the debt is behind the curtain I cant value the company and so will not invest.

'Nationalize Insolvent Banks': Buffett Didn't Get Roubini's Memo

Buffett has put his capital to work as loans not as stock purchases. This suggests he is in hold mode gathering more cash. The tell for me is promoting bank stock but not buying it. Had he sold half JNJ and used the money to buy AXP or WFC it would show a 20% was dropped if favor of a higher bank return