pharma

Ambac, MBIA Finally Get the Rating They Deserve

"The FED will prevail in its objective and the shorts will mega cover in the period ahead. Do not bet against the FED aim of stabilizing the financial sector."

Prevail by just printing money? May be the Fed will succeed by keeping big ibanks and commercial banks alive but for how long before even "government-cooked" inflation will exceed 10-20% and gas prices in the USA will go over $10-15/gallon?


Keep dreaming. There is no possibility to escape the reality and it is coming in a big way. It called a depression. Back then, from 1929 until 1931, the Fed too pushed interest rates low but commodity prices forced them to raise the rates in a big way...Then FDR started printing money but it did not help!

Ambac, MBIA Finally Get the Rating They Deserve

"The FED will prevail in its objective and the shorts will mega cover in the period ahead. Do not bet against the FED aim of stabilizing the financial sector."

Prevail by just printing money? May be the Fed will succeed by keeping big ibanks and commercial banks alive but for how long before even "government-cooked" inflation will exceed 10-20% and gas prices in the USA will go over $10-15/gallon?

Bond Insurer Break-Up: Beware Unintended Consequences

All these discussions by politicians about the best way to screw monoline insurance companies are very dangerous.

The world entire financial system is very unstable and there is no time to lose. The situation continue to deteriorate with every single day. There is no room for a grand standing at this time.

In my view, the federal government must ensure stability and solvency of major monolines as well as major commercial banks. The next step will be to ensure clarity and transparency of the financial system with most financial derivative must be eliminated.

Only after stabilizing the financial system, the other issues can be addressed. The nonsense of how to prevent a recession must be stopped. Real-estate foreclosures and a recession can not be stopped and/or prevented. Let free market mechanisms take place of it.

Unfortunately, it is an election years. It will be very difficult to find a consensus on how to fix the situation. Consequently, the overall financial and economic situation will continue rapidly deteriorate.

Monolines: The Spitzer Debate

The present financial crisis is lasing for too long. It is time for the Congress and Government to step in restoring trust in our financial system by:
- Bailing out the critical financial institutions and commercial banks [Lockheed's bailout worked just fine]. Looks like UK is just started this process.
- Financial markets must be much more transparent. Most of derivatives must be eliminated.
- Not critical financial institutions must be allowed to fail
- Leaders of financial institutions responsible for the present financial mess must be removed

The present Congress and Government response to the present situation reminds me a drug addict asking his doctor for help and, in return, getting a lone to buy more drugs.

Monolines: The Spitzer Debate

Any business and individual do make good, not so good, and bad decisions. This time monolines have made many poor decisions. This is life.

The main blame with the present financial crisis is lying with the Wall Street investment banks and Feds for allowing "derivatives" misrepresentation and outright fraud.

Finally, do we want our Congress and our Government to run insurance businesses? Just a reminder: the past Soviet and Chinese state-run economies did not do too well.