Raution

The Next Major Crisis Brewing

Derivatives were as risky as they are now and little regulation has been a major issue on this end. It has been a dangerous tool because of its complexity and leverage...now will really take skills to bring the economy out of this trouble without hurting the main street any more...

No One Saw This Economic Crisis Coming?

Thanks Steven for bringing this to light. I completely agree with you that they should have people on board who have understood the crisis better than the most educated people on board.


On Jul 12 05:22 AM Steven Hansen wrote:

> we are faced today with a president surrounded by economic advisors
> who all think the same. no presidential advisor foresaw the crisis
> coming.
>
> if they did not see this crisis coming, i have no confidence they
> can steer us out.

IMF Notwithstanding, Just Don't See a Depression

I think the real issue is not where we will have a flat future but it is more of how long do we expect the downward movement of contraction to continue.

Economic News Roundup: It Could Be Worse

well i agree that there are plenty of reasons to believe that the worse is not yet over and there is much more to follow. On the other side there are bunch of economic indicators stating that there is a recovery on the other side and we are reaching there soon. I am expecting this to happen sooner than later.

Unemployment Jumps Another Half Percent

This is definitely not a good news and is expected to have deeper impact on economy with ripple effects. As lesser number of workers means lesser production, lower consumer spending and greater recession.

The Joke Called Indian Accounting Standards

I consider Mark to Market as a tool that has its merit and demerits. Lets talk about it first and then draw a conclusion. MTM was favorable to all companies when the prices of the stocks were rising and thus the companies were more than happy to follow this rule as it will help them reflected higher market capitalization and strong balance sheet. But now the game is reversed. After taking heavy beating in the market, companies are not inclined for MTM as it will make them look bad due to lower capitalization and weaker Balance sheet.
I hope it is clear that the issue is not completely the case for illiquidity but more about company benefits from the rule.

Google Closes AdSense Video Ads, Becomes Litmus Test for Recession

Its good to follow growth companies to get a kind of idea what it will look like if they still want to grow in the recessionary market. But I am not very positive that will draw a very high correlation of market stabilization

The Falling Real Price of New Cars

Thanks for a good insight...it does make sense and speaks about the intense competition and matured auto industry.

John Hussman: The Danger of Inaction

This is just another indication of some additional bad news to follow and a hit to the index. I am sure that its affect is not well calculated in the real estate and financial industry.

Bank Bailout Comedy: Four Clips from Colbert

Its a good thought to return back to society but it should basically come from withing should be a volunteer thing rather than a forced act. I am not convinced that taxing rich people more is a right choice for the government.

Exclusive: Big Banks' Recent Profitability Due to AIG Scam?

i appreciate your insight...it is apparent tht there is much more than the common man is aware. I completely agree that this bull run is too short and is based on some legal manipulations and all the parties are involved including FED and Treasuries..

The Week That Actually Was (Not as the Market and Media Would Have You Believe)

This was a great insight and good follow up with numbers to validate the facts.

Economic Fault Lines Emerge

I could not agree more with Peter, but I am not sure that all the issues have a black and white solutions. So is this case. I think the most academically feasible solution is not the the right solution all the time. This issue more than just more savings which is the bottom line of this article. I would agree that US needs to boots its saving rate but it needs to ensure that the consumptions are not slowed down dramatically. A good mix of savings and consumption will help us bail out of this situation.

Why I'm Skeptical of This Rally

i would not buy the idea that it is just a "dead cat bounce" There is more into this.

The Geithner Plan: The Least-Worst Option?

I think I will by the first idea of Speedspirit but not completely. As there should be some carrots to tempt the market to get into these mortgage loans. I am convinced that this is a great plans and even though it has short comings it should work.


On Mar 25 05:42 PM Speedspirit wrote:

> Competeing investors will not find true value of the worthless loans
> and securities because the taxpayer is paying 85% or more. Bad Idea
> #1. Bad idea #2 enter a new phase of financial crisis. The 11 trillion
> is enough to bankrupt this country and way shy of the 600 trillion
> problem. So the banking system is bankrupt lets be honest. Bad idea
> #3 the banks do want this they just cant jump up and down or else
> the gig is up. To believe otherwise is follish. So the idea to vote
> for the least worst idea is the worst idea.