Jim Bond

AIG: Spiraling Downwards, And Awarding Bonuses on the Way

Everyone keeps finagling and talking around the point when it comes to these bonuses. What needs to happen here, is that someone has to step forward and do the right thing for a change, and let the chips fall where they may. Paying these bonuses with taxpayer money is just plain wrong. What kind of society have we become when the conduct of this company and this financial products unit is so egregious, and yet people are still debating what to do? They gave us the reverse split to boot, and Ockham is absolutely right. This just created a new downside for shorts, and the rest will be completely washed out. Greenberg, love him or hate him, has this right. He never would have let the company come to this, and no way he would have paid these people bonuses. Just my humble opinion.

Will the U.S. Start a Car Scrapping Incentive Program?

A good incentive program, but why limit it to cars over 8 years old?
Wouldn't this target at the least likely to be able to afford a new car? What did we learn from the housing bubble about people over extending credit at the behest of government programs? What about someone with a four year old car that has been ready to trade in and pay cash for the difference? Why is that person excluded? Could it be that helping the "middle class" has become a euphemism for helping the poor under President Obama, whereas it was a euphemism for helping the rich under President Bush? Woe be the middle class, here we go again.

Big Banks: Pulling Off the Ultimate Bait and Switch

Remember the robber barons that brought about the great depression? The oligarchy is reborn with a vengeance, and the dynasties are still around to contend with. The heck with the
tax on bonuses, let's get that estate tax back up to 90% so we have only one generation at a time to put up with.

The Bonus Tax: The Redistribution of Both Wealth And Talent

"Their competitors, on the other hand, are going to have a field day snatching up talent that is trying to escape lower paying government wages, along with the restrictions placed on such businesses".

What is wrong with that? Seems resonable to me. However, we are talking about thousands of high paid people out looking for jobs THAT ARE NOT THERE, certainly not at their pay scale. Even so, the ones that do trade places will presumable help those companies that did not self destruct. I am all for it, even if they are foreign companies. Welcome to the global economy.

But wait, aren't these the same people that were are the epicenter of the global economic meltdown? That doen't look so good on the resume.

Stock Treasure at the Bottom of the Ocean?

Thank you for the clarification. In my view here is the problem with OMEX.: They began on the basis that a well run, publicly held treasure hunt company, could depart from treasure hunt history and succeed as a long term business investment for shareholders. I understand the three pillars of this proposal were that 1. they could continually discover and recover new salvage with cutting edge technology, 2. they could successfully claim and market this salvage, and 3. they could be profitable and reward shareholders on a consistent basis over time, much like any well run corporation. This presumption has now been playing out for many years.

I believe you will agree that in respect to #1, they get an A+. They have found treasure and demonstrated they can recover it with cutting edge technology.

In respect to #2 and #3, if you have evaluated the results carefully, I believe that you will agree they have failed, quite emphatically.

You are correct that this an interesting stock to trade, but as a long investment, the track record is very poor. As far as the management is concerned, the founders came straight out of the old treasure hunt
"business" and all that implies, and now there is only one founder left.
It seems to me this is going to take in all likelihood, a great deal more time to move from a day trading opportunity to a serious long term prospect, if ever. And, after all, what is the succession plan for that remaining founder?

I agree with you, money can be made trading this penny stock if that is your strategy. However, getting to profitability and for that matter ever becoming the next fortune 500 opportunity is a considerable stretch.

Nobody in charge of a serious company ever wants it to trade under $5.00. Nevertheless, with all the gold and silver, entertainment strategy, management "expertise", and business plan, that is where this stock is trading today (and was before the credit crisis ever hit Wall Street).


On Jan 02 10:09 AM Economic Disconnect wrote:

> I opened my position in OMEX on December 17th 2008 and still hold
> that position as of today.

Stock Treasure at the Bottom of the Ocean?

To the author: When did you first own this stock, and how long have you held shares? Thanks in advance for your reply.