Roscat

Vikram vs. Kenny: Which CEO Will Be Ousted First?

Kenny only. Give Vikram some time.

Jim Rogers: It's Better To Let Financials Fail

I think Jim Rogers has good points. The failures in the financial services system should be exposed by allowing the companies to go bankrupt.

It seems to me that the government is looking to replace the bankruptcy courts when the best job is instead done by filing Chapter 11, re-org.

For the government plan to work, the values of the bubbled assets need to be revived. Does that mean 10, 20, 30 years? Surely the same government will not even be around by that time to realize that this choice was not feasible.

Unfortunately, most us will be around and we will only have us to blame if we don't ask for these companies to go bankrupt now. Take the medicine now - it tastes bad, but the downside if it's not taken, is that the virus could mutate in a worse shape.

How the Death of Citigroup Can Give Life to the Markets

This was a good article until it recommended the nationalization.

I believe that more gains are to be achieved by letting Citi go bankrupt. Selling it at discount for parts to all those interested will be more beneficial in the long term.

As an individual, I am not interested in any of the assets I would receive as part of the government purchase. Somewhere has been mentioned that it will take another 10 years to get to the same bubbled prices of 2007. I would rather invest my money elsewhere during that time.

Yes, letting Citi go is the only viable option but, I want my options in investing my money any way I want.

Fixing the Economic Crisis in Six Easy Steps

You must be joking.

Nationalizing will do nothing to the taxpayers but increase their burden. That includes you too.

So, I sold my shares in BAC and C so you can force them down my throat by purchasing them through the government and then lose even more money because they are insolvent? Let me just say that I don't subscribe to that point of view.

There are old and very good bankruptcy laws that are very alive and well. They were invented in Capitalism. Use them wisely. Take example from Saab.

Regards.

The Daily Double: Martin Mayer on CDS; Nouriel Roubini on the Banks

Nouriel is right. Let the free markets play this out. Mark-to-market is the only way to go outside of Socialism.

disclaimer: no BAC or C stock - sold them years ago.

Too Big to Bail: Lehman Brothers Is the Model for Fixing the Zombie Banks

Excellent article. Bankruptcy is meaningful.

Is Bank of America Actually Behind Citigroup on the Problem Bank List?

Companies HAVE to mark-to-market sooner or later. And BAC was greedy and impulsive to make such acquisitions.
If you have an investment that you cannot sell and have to wait years for it to barely gain some value, it is useless. If you keep it off the balance sheet, then, make some money with the other investments. The problem is, no company can do that. It's like in 2001 when investors where caught with shares of Internet companies that were not making any money. Whoever was able to keep the shares, barely made any money on them even 8 years later. Whoever was able to sell at market prices, moved on to better investments (derivatives, for example - to be sarcastic). Just mark-to-market as much as possible and move on. You have to pay for risk in investment.
BAC has been jealous on C for decades and wanted to become domestically what C was internationally. As a reflection of Ken's personality, BAC spent as much as possible for acquisitions that made sense theoretically. The problem that BAC has is exactly what RBS has. The ideas were right, but KL was unable to time the deal and calculate the consequences, thus destroying even what he had valuable. Let Ken, his board, and 2 down go, and have them sell some of the assets they have to make up for the bad deals they made. And after that pray that a union between North and South will actually work, even after more than 100 years.

Regards.