BK GUY

Rick Santelli Speaks for the Silent Majority

I have spoken to many people who agree with Santelli, only 1 or 2 who disagree. Santelli said what many of us feel. Check out the online poll at CNBC. It is about 92% in support of his Chicago Tea Party. So you really think America is behind this mortgage plan? I don't and I think Obama knows it and doesn't care.

Predictions for the Coming 'Flation'

There will be inflation down the road. But will it be here in America? Or will it be abroad? Or here and abroad? This remains to be seen. Suppose all that money sitting in the banks is loaned out and invested, not in America, but in China, India, Brazil, etc. My point, in other words, is that while we can predict the creation of another bubble, we cannot predict where or how it will manifest.

Five Reasons the Market Could Crash This Fall

Say you buy home insurance from Insuracorp; your house burns down; you go to collect on your policy only to find Insuracorp is broke. Does your claim against the insolvent insurer make you whole? Obviously not.


On Aug 04 12:10 PM contracontrarian wrote:

> "If Wall Street did put $50 trillion at risk… and 10% of that money
> goes bad (quite a low estimate given defaults on regulated securities)
> that means $5 trillion in losses: an amount equal to HALF of the
> total US stock market."
>
> Any one particular Wall Street firm can lose everything they have
> or even more,but other Wall Street firms would earn the same amount
> at the same time,as they are on both sides of those derivative positions.
> Alltogether "Wall Street" can not lose money on their derivatives...

Trust - Not Confidence - Is the Issue for Geithner

Trust, honor, responsibility, integrity, confidence. These are all disappearing, and our government is largely to blame.

If Integrity is doing the right thing when NO ONE is watching, it is readily apparent that Geithner has none. So why are we still discussing him for the second or third most important job in America right now?

"In the annals of CNBC cluelessness, this morning’s outburst by the channel’s Rick Santelli is up there with the worst." (Columbia Journalism Review)

What you self-proclaimed intellectuals fail to understand is that a large majority of the population of this country didn't act irresponsibly and they are ANGRY that the government keeps giving hand-outs to the crooks, thieves, and liars. Santelli speaks for us. So, really, who is clueless here? I don't believe it is Santelli.

Bernanke's Speech of the Day

While it is true that we need a working COMMERCIAL banking system for the economy to function, there is no reason why we need ANY particular bank for that system to function. Why not use the printing presses to protect depositors, or shore up the capital of the responsible, prudent banks? Make the "good" banks stronger -- let the "bad" banks fail. Confidence cannot be restored to the passengers as long as the crooks and thieves continue to drive the car.

Bill Gross: Buy Early What the Government Buys Later

Every Country will continue to buy our debt?? Other countries have already begun to reduce the amount they buy. This will continue. Foreign countries used to hold our debt because it was considered "safe." They now realize it is not so safe, and getting less safe with every bailout. This doesn't necessarily mean rates will rise, though. There is one big buyer with an unlimited amount of cash at his disposal. You probably have heard of him. Rates can stay low a long time, like in Japan. I wouldn't bet on interest rates, foreign currencies, or paper commodities. Too easily manipulated and too many moving parts. Remember that the second mouse gets the cheese.

Big Risks, Big Opportunities

"At some point the interest rates are going to take a big jump and if you believe like I do it will be a MONSTER JUMP." Not necessarily, the Fed can print money to buy treasuries to keep yields (rates) artificially low.

As for inflation/deflation, I am firmly in the deflation camp (for now). There is no velocity of money. No matter how much the Fed prints, it just sits there in the bank -- having no inflationary impact. Someday it may start to flow. Wherever it flows, there will be increased demand and so rising prices. If it flows to American consumers, you may have hyperinflation. If it is expatriated, some other country may have hyperinflation. If it all flows to oil, the Great Depression will look like a picnic.

Agree that dollar is being devalued. This is the explicit goal of the Fed (whether it is wise or not is another question).

Federal Reserve, What Do You Have to Hide?

How about "Henry & Whine-hards Private Reserve."

Whatever Happened to Bankruptcy?

This bailout is nothing like Bankruptcy. In Bankruptcy, all of the company's contracts (executory) can be accepted or rejected. In Bankruptcy, all payments to insiders (management) within the last year can be recovered. In Bankruptcy, the company is protected by an automatic stay. In Bankruptcy, a trustee can be appointed to investigate corruption and graft. Virtually none of these things will occur outside bankruptcy -- which is why this bailout is doomed to failure -- just like the others. This is a bailout for the UAW. Let's not kid ourselves.