KIT

Ten Most Ignominious Reassurances from the Great Recession

Multi million dollar bonuses or the truth you cant have both

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.

Citigroup and Berkshire Pricing Anomalies

Warren is protecting the shareholder from his eventual death were all his shares will be deemed sold. The resulting tax can only be met by a massive selloff, this selloff would decimate the current shareholders. This donation prevents a single day wipeout.

Ford foundation, Carnegy, and many others have done the same for the same reason


On Jul 06 04:33 PM U338129 wrote:

> If Buffett's gift is impacting the stock in a negative way then shame
> on him (I doubt the gift is what's causing the mediocre pricing of
> the stock). Philanthropy is great, and we should all be so lucky
> one day to partake in it, but if the CEO of a company is partaking
> in an action that is decreasing shareholder value (however short-term
> it may be) then he/she should be called out for it; regardless of
> who it is. We all know about his arrangement and it's very noble.
> However, he still owes it to his shareholders to increase shareholder
> value. He already forces shareholders to sit through these downturns
> without so much as a mild dividend to hold us over. We're also left
> in the dark about the transition plan (it is not unfair to ask for
> details when the man that holds the key to the kingdom is nearly
> 80 years old). I believe he's been one of the best at managing retained
> earnings; but, the stock sure isn't reflecting that greatness lately.
> Still holding on to the stock but I can't say that I'm ecstatic about
> its performance over the last 18 months.

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

This Government Can't Be Serious

>Seeing that the dollar has lost 93% of its purchasing powers this century, ( 100 years )

The dollar is always in motion, the only dollar that has lost 93% IS THE ONE YOU EARNED IN 1909. Dollars earned then were used to buy things of the day are market prices or invested and gained more than 93 % total. Just as dollar will today. Govt action inflation market forces will rebalance the value and we all move on. If the dollar value falls and there is no way to gain to make up for it the world stops, there would be no reason to be in the economy.

Like the old Russia " They pretend to pay us and we pretend to work "

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.

'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

What Do We Need In 2009? More Failure

Too big to fail is the new battle cry!

I can't wait for this market to bottom. I will invest in all the newly created banks. It is obvious now that the most outlandish, crazy, financially stupid, flaming gamblers are the way to go. I don't know what the next Kamakazi plan will be but count me in! We know now that we will get a 3 to 4 year run of unsustainable gain ( going up is good, dont care how ) then we jump off at the top. The crash is for others to bare... stupid them.